EUR/USD: Bearish Outlook, with fundamental data – Scotiabank

FXStreet – The Scotiabank analysts take a look at the recent developments in the European trade the EUR/USD.

Important Quotes:

“The French Q1 GDP rose by 0.4% (from 0.3% expected), while the CPI in Germany reflects a weak inflation pressure; the NRW Inflation fell in may compared to the previous month -0.2% and the annual inflation rate moved from 2.1% in April to 1.6%.”

“ECB President Draghi stressed yesterday that the slimming down of the risks for the Euro zone economy, but the Loose money policy is still necessary. We see no early shift in the ECB’s easing. Add to that the speculation in the German press that Greece will not pay its next debt repayment, and in Italy it can come to early elections.”

“The European Blue Chip shares have lost in the past week compared to the US markets by 2%, which puts the EUR in the short term, under pressure.”

** FXStreet News Editorial, FXStreet**

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