EUR static in mid-1.10 range – Scotiabank

The Euro (EUR) is little changed on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

PMI revisions disappoint

“Final Eurozone Services and Composite PMI data were a little worse than the preliminary August read. Spanish and Italian data were mostly better than July data but failed to meet expectations. France’s Composite data were revised slightly higher while German data were revised a little lower.”

“The data had no significant impact on spot trading but sluggish growth momentum in the Eurozone may crimp the EUR’s ability to take fuller advantage of a soft USD once the Fed easing cycle starts. Spot retains a soft technical undertone after peaking around the 1.12 point late last month.”

“But EUR losses are showing signs of flattening out around the mid-1.10 area, which roughly equates to the 1.1040 retracement support point (38.2% of the EUR’s August rally). Short-term price action suggests a minor low may have been reached yesterday on the quick dip under 1.1030. Resistance and minor bull trigger is 1.1100/05.”