EUR up modestly and outperforming G10 – Scotiabank

The Euro (EUR) is up 0.2% against the US Dollar (USD) and outperforming all of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Spreads offer support

"Markets appear to be ignoring news of fresh political turmoil in France following the prime minister’s announcement of a confidence vote, expected to take place on September 8."

"Fundamental releases remain limited and the highlight remains Germany’s preliminary CPI scheduled for later this week. Interest rate differentials remain supportive as Germany-US yield spreads hover just below their recent highs. We see scope for continued support as markets shed their expectations for ECB easing and price out rate cuts."

"The RSI is at 50, offering no clear momentum. Congestion remains centered around the 50 day MA (1.1652), and descending resistance has been observed in the mid-1.17s. We look to a near-term range bound between 1.1580 and 1.1680."