Ned Rumpeltin, European Head of FX Strategy at TD Securities, notes the EUR/USD is underperforming after trading below near-term support around 1.2025. This opens the door for the pair to revisit last month’s lows near 1.1950.
“EUR/USD declined through notable near-term support around 1.2025 this morning. This opens the door for the pair to revisit last month’s lows near 1.1950 after the February Flash inflation data printed squarely in line with the market’s expectations.”
“A break below 1.1950 could see bids first begin to emerge in the 1.1905/20 zone that managed to cap the pair for much of late 2020.”
“With the region’s economy still deep in the doldrums, we think the EUR will lag its peers as the euro area continues to underperform on its vaccine rollout program.”