EUR steady around 1.17 – Scotiabank

The Euro (EUR) is entering Friday’s NA session unchanged against the US Dollar (USD) as it outperforms most of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EU avoids tariff letter for now

"The 1.17 level offered congestion through a relatively quiet week, data-wise, as the EUR navigated a steady barrage of trade-related headlines that ultimately left the EU unscathed – for now. Comments from the ECB remain neutral, as board member Schnabel stressed that there was a ‘very high’ bar for further easing. The short-term rates market continues to fade its pricing of cuts, and December is down to 21bpts of easing vs. 27bpts a week ago."

"The medium-term bull trend is intact, despite the latest defensive drift that we’ve observed following the multi-year high reached on July 1. The RSI has pulled back from overbought levels in the mid-70s and is softening toward 50. We continue to highlight the importance of medium-term support at the 50 day MA (1.1466). We see the near-term range bound between 1.1650 support and 1.1750 resistance."