EUR a mid-performer with mixed data – Scotiabank

Euro (EUR) is soft, down 0.4% vs. the US Dollar (USD) and a mid-performer among the G10 as we head into Tuesday’s NA session. The latest European confidence releases were largely in line with expectations and showed a modest improvement on the month, Scotiabank's Chief FX Strategist Shaun Osborne notes.

France CPI is soft

"Germany’s GfK was marginally better than expected and also improved on the month, while France’s preliminary CPI for May unexpectedly printed a negative m/m read and came in lower-than-expected y/y at 0.7%. ECB policymakers remain dovish heading into the June 5 meeting, with markets almost fully pricing a 25bpt rate cut."

"The trend for EURUSD remains bullish, given the sequence of higher highs and higher lows since February. The local range remains bound between the mid-May low (1.1065) and the late April high (1.1573) with momentum leaning bullish. Near-term support is expected around 1.1280 and nearterm resistance is expected around 1.1420."