The Euro (EUR) is moderately higher on the session, with gains retesting recent peaks around 1.0540 before easing, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR firmer on hawkish Schnabel comments

“Hawkish comments from ECB Governor Schnabel that the central bank needed to be cautious about cutting rates too far as policy is nearing neutral helped give the EUR a lift.”

“The EUR may gain a little more in the near term as positioning is lightened up around the US Thanksgiving break but scope for significant gains remains limited. My fair value estimate for EURUSD is little changed today at 1.0427.”

“EUR gains from last week’s low continue to pressure the mid-1.05 area after breaking above minor trend resistance off the early November high around 1.09. Moderate gains may extend a little further towards the 1.0600/50 zone if a clear push above 1.0550 develops.”