EUR/USD: In a good position to extend its run higher – Scotiabank

EUR/USD was last seen trading at around 1.0750. Economists at Scotiabank expect the pair to break past the mid-1.07s.

Eurozone assets remain attractive

“The stars have aligned to put the EUR in a good position to extend its run higher. EUR sentiment has clearly improved amid retreating recession risks, helped by unseasonably warm weather reducing the impact of the energy crunch, and continued ECB hawkishness.” 

“Eurozone assets remain attractive (strong returns relative to US stock market since Oct), giving the EUR some additional tailwinds.”

“A weak US CPI report tomorrow will likely push spot through the mid-1.07s.”