EUR/USD: Break under 1.0840 to put a test of 1.0775/1.0800 on the radar – Scotiabank

EUR/USD dips back to the lows 1.0800s. Economists at Scotiabank analyze the pair’s outlook.

The short-term downtrend is gathering momentum

ECB President Lagarde reiterated that policymakers need more evidence that inflation is receding but, if data outcomes are in line with current expectations, the central bank can start dialing back rate hikes in June. The ECB would remain data-dependent thereafter and will not pre-commit to policy moves.