EUR/USD: to be well supported on dips - Scotiabank

Analysts at Scotiabank explained that ECB’s Villeroy suggested that the ECB may moderate QE in the fall, winding down on policy accommodation is not a “present debate” while Coeure noted that the Eurozone is experiencing a strong recovery. 

Key Quotes:

"Villeroy’s comments suggest no policy changes at the Jul 20th ECB meeting but Sep looks a real possibility for tapering if economic data remain positive."

"EUR/USD look to be on hold near-term as limited data releases and focus on Fed Chair Yellen’s comments mid-week suggest quiet trading for the moment. We look for EUR/USD to remain well-supported on dips."