EUR/USD needs to extend through the 1.0900 area to gain a little more ground towards 1.0950 – Scotiabank

EUR/USD is holding a tight range around the 1.0900 figure. Economists at Scotiabank analyze the pair’s outlook.

Trend signals are neutral

ECB Governor de Cos commented that the first interest rate cut could come in June, supporting what appears to be a strengthening consensus among top policymakers that a mid-year ease is most likely.

EUR/USD is consolidating. EUR gains are well capped around 1.0900 at the moment and spot needs to extend through the figure area to gain a little more ground towards 1.0950. 

Range support is close by at 1.0875 ahead of 1.0840/1.0850. 

Trend signals are neutral.