EURUSD looks somewhat fragile again – Scotiabank

EURUSD slides below parity. The Euro looks vulnerable again, in the view of economists at Scotiabank.

Euro stocks may support

“Ironically, the recent gains in spot have perhaps been getting some support from relatively better equity market returns in Europe versus North America which has seen better relative investor interest in FX unhedged European equity ETFs, data suggests. Investors want exposure to European stocks and the (cheap looking) EUR, in other words.” 

“Intraday patterns – very tentatively –  suggest some better EUR demand is emerging in the mid-0.99s but the failure to press higher after a strong advance from last week's low leaves the EUR looking somewhat fragile again.” 

“Support is 0.9890/00. Resistance is 1.0040/50.”