EUR/USD climbed toward 1.1200 resistance on lower oil prices, though analysts at BBH warn that French fiscal instability remains a significant downside risk toward 1.1000.
BBH notes EUR/USD recovered toward 1.1200 resistance from an intra-day low near 1.1130 as lower oil prices ease the energy drag on Eurozone growth. However, the bank warns France's ongoing fiscal troubles could still drive the pair down to 1.1000, leaving downside risk. The supporting and dragging forces largely offset, so the near-term direction is unclear.
EUR/USD recovered toward 1.1200 resistance from an intra-day low of 1.1130 as lower crude oil prices reduced energy-related growth pressures in the Eurozone. Despite this support, Brown Brothers Harriman warns that ongoing fiscal troubles in France could push the pair back down to 1.1000. ECB officials Knot and de Cos maintain a cautious stance on further tightening and inflation risks.
The pair bounced from around 1.1130 toward 1.1200 resistance, helped by lower crude oil prices that reduce the energy drag on Eurozone growth.
France's ongoing fiscal troubles could still drive EUR/USD down toward 1.1000, according to Brown Brothers Harriman.