EUR/USD Soars on Strong Euro Area GDP and Yield Spread Recovery

According to Scotiabank strategists Shaun Osborne and Eric Theoret, the EUR/USD is trading in the mid-1.15s with modest gains against the US Dollar (USD), supported by euro area Gross Domestic Product (GDP) and a return to trade surplus.

The recovering yield spreads underpin the Euro, with their narrow fair value estimate at 1.1641, above spot. This suggests that the EUR has room for further upside relative to its current price.

Short-term technicals are described as bullish, with support near 1.1500 and resistance around 1.1580 and the 200-day moving average. The recent consolidation range has offered support at 1.1500, indicating a potential upward momentum.