Scotiabank doesn't believe in the further rise in EUR/USD

Yesterday the EUR/USD managed to break firmly above 1.07 dollars, which held back the growth of the pair last week. However, analysts of the bank in no hurry to move into the camp of the bulls since, in their opinion, the dynamics of the couple reflects only the adjustment of the positioning of market participants, rather than a fundamental change in the outlook for the US currency.
Mario Draghi's speech last week clearly wore a soft character, while the Federal Reserve expressed growing confidence in the stability of economic growth.
The differential in yields on short-term US and European bonds narrowed somewhat, but remained in the range of the last few weeks, so the prospects for further growth of the single currency seems questionable, say analysts. They remain bearish in terms of the couple and believe that current levels do not correspond to fundamentals.