The Euro (EUR) is up 0.3% against the US Dollar (USD) and a mid-performer among the G10 as we head into Friday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
"All eyes are on next week’s ECB as market participants look to confirmation of the latest shift in communication toward a more neutral tone. Yield spreads have stabilized in a EUR-supportive manner, and appear set to push higher following their pullback from late June. Trade policy uncertainty remains a near-term headline risk into early August, and we note the absence of any material progress in US/EU talks."
"This week’s price action has revealed meaningful support below 1.1600 and today’s gains offer the signs of a possible recovery following the pullback from late June. The RSI remains neutral around the 50 threshold, and EUR/USD also remains comfortably above the 50 day MA trend support level at 1.1499. We look to a near-term range bound between 1.1580 support and 1.1700 resistance."