EUR/USD: should be trading quite significantly lower, in fact - Scotiabank

Analysts at Scotiabank explained that the Eurozone data releases earlier reflected stronger than expected German industrial production (+0.8% m/m) and slightly stronger than expected European GDP (+0.6%, versus +0.5% expected). 

Key Quotes:

"EUR/USD is trading modestly higher on the day but the impression remains of a market that is looking around for direction after the surge higher Friday on the weaker US NFP data. 

We continue to think that the wide (133bps) spread premium the USD continues to enjoy relative to the EUR implies some restraint on how far the EUR can rally at the moment (and rather suggests to us that EUR/USD should be trading quite significantly lower, in fact)."