EUR static mid-range 1.10 – Scotiabank

The euro (EUR) is little changed during the session, notes Shaun Osborne, chief FX strategist at Scotiabank.

PMI revisions disappoint

“The final Eurozone services and composite PMI data were slightly worse than August’s preliminary reading. Spanish and Italian data were mostly better than July data but fell short of expectations. France’s Composite data was revised slightly higher, while German data was revised slightly lower.”

“The data did not have a significant impact on spot trading, but the slow pace of growth in the Eurozone may reduce the Euro’s ability to take more advantage of a soft USD once the Fed’s easing cycle begins. Spot maintains a soft technical tone after peaking around 1.12 points late last month.”

“But EUR losses are showing signs of flattening around the mid-1.10 area, which roughly equates to the pullback support at 1.1040 (38.2% of EUR’s August rally). Short-term price action suggests that a minor low may have been reached yesterday in the rapid decline below 1.1030. Minor bull resistance and trigger is 1.1100/05.”