EUR fades a portion of this week’s gains on sentiment and softer data – Scotiabank

The Euro (EUR) is weak, down 0.6% and fully retracing Thursday’s ECB (and US PPI)-driven rally, fading back to the psychologically important 1.15 level.

Medium-term outlook remains bullish

“The fundamental outlook for EUR remains supportive, given the shift in the outlook for relative central bank policy as the ECB pivots toward a neutral stance while markets price in greater easing from the Fed.”

“The release of softer trade and industrial production data have compounded Friday’s sentiment-driven decline, however we remain bullish on the basis of medium-term trends and look to further gains through next week’s FOMC.”