EUR a mid-performer but still weak vs. USD – Scotiabank

The Euro (EUR) is down 0.6% against the US Dollar (USD) and a mid-performer among the G10 as we head into Tuesday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets eye September 8 French confidence vote

"Broader developments are weighing on the EUR, and spillover from the UK fiscal situation is also dragging euro area bond yields higher as well. European political developments remain in focus as markets eye France’s Sept 8 confidence vote and consider the risk of fresh elections in the event of a collapse in government."

"In terms of data, the euro area preliminary CPI figures were in line with expectations at 2.1% y/y, and the core print surprised modestly relative to expectations, remaining unchanged at 2.3% y/y. The EUR is weak but still trading within its recent range, and the RSI remains close to neutral just below 50."

"Tuesday’s decline has delivered another break of the 50 day MA (1.1666) trend congestion level and we look to near-term support around 1.16. We see near-term resistance at 1.17."