EUR/USD: US fiscal impasse to let a leg higher toward 1.19 – OCBC

The EUR/USD pair is trading around the 1.1850 at press time, representing a 0.1% gain on the day.  The downside looks muted at best with investors focused on fiscal deadlock in Washington, Terence Wu, an FX strategists at OCBC Bank, reports. All in all, a move towards 1.19 is on the cards.

Key quotes

“EUR/USD remains the main beneficiary for the stalemate in Congress over the fiscal relief package and the lack of conviction over the US macro recovery.” 

“The ability to hold gains above 1.1800 suggests a grind towards 1.1900 cannot be ruled out.” 

“For now, expect supports at 1.1780/00.”