EUR fails to hold gains above 1.05 – Scotiabank

The Euro (EUR) got a minor boost earlier from slightly better than expected preliminary December Eurozone PMI data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

EUR falls below 1.05 after Eurozone PMI data

“French and German Services activity were stronger than forecast, helping lift the Eurozone Services component to 51.4, more than two points above November’s result. But the EUR is struggling to maintain any positive momentum amid lingering trade concerns.”

“Moody’s cut France’s sovereign credit rating from Aa3 to Aa2 in an unscheduled announcement late Friday, meanwhile. The Bund/ OAT spread widened slightly in early trade but has corrected back to near levels prevailing at the close of trade in Europe on Friday.”

“The EUR is just about holding on to its December trading range. Despite a decent rebound on Friday, the EUR is struggling to hold a bid above 1.05 still and intraday price action looks somewhat negative at this point, suggesting another rejection of 1.05+ levels. Support is 1.0450/60. Resistance is 1.0535/40.”