EUR/USD holds gains above 1.0750 as markets position for weak US data. Thus, economists at Scotiabank expect the pair to extend its advance.

ECB rate hikes to support EUR

“Policymakers (Rehn, de Cos) continue to suggest that ‘significant’ rate hikes are appropriate in the months ahead which will backstop the EUR.” 

“Short-term spot trends reflect positioning ahead of US CPI data amid expectations of weak data and more pressure on the USD.” 

“Spot is establishing a foothold above the 1.0750 area which should be a platform for more gains – if the CPI is as weak as markets expect.”

See – US CPI Preview: Forecasts from 10 major banks, price pressures to ease further