EUR up modestly vs. USD on mixed second-tier data – Scotiabank

The Euro (EUR) is entering Thursday’s NA session with a modest 0.2% gain against the US Dollar (USD) following a bullish reversal of its early European session losses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR/USD ignores ongoing political uncertainty in France

"Fundamental releases have been limited to second tier euro area current account (softer) and construction output figures (improved) and no data from either France or Germany. France’s political situation remains a key source of uncertainty and 10Y OAT yields (France) are now trading above their Italian counterparts."

"France’s new PM is struggling to gain support from the Socialist Party, and Wednesday’s comments from the National Rally’s Le Pen remained combative—suggesting that President Macron should dissolve parliament or resign."

"The technical picture is bullish with an RSI around 60, well above the 50 threshold at 50 and still shy of the overbought level at 70. The EUR is holding on to its recent gains, despite Wednesday’s minor pullback, having pushed to a fresh high just above 1.19. We see 1.20 as the next major resistance level, followed by 1.2250. We look to a near-term range bound between 1.1780 and 1.1880."