Scotiabank: EUR/USD Limited Resistance Ahead of 1.1700

The EUR/USD exchange rate has been experiencing an upward trend due to improving yield support and expectations of an ECB rate increase, according to Scotiabank.

In their latest analysis, FX analysts at Scotiabank note that the outlook for relative central bank policy remains supportive as they observe a continued recovery in yield spreads with a narrow fair value estimate currently around 1.1650.

This estimate is slightly above the current exchange rate of 1.1626, which has been virtually unchanged on the day after rising 0.12% on Monday.

Thursday's ECB monetary policy meeting is expected to result in a widely anticipated 25-basis-point hike, alongside a relatively hawkish message on energy-driven inflation risks.