EUR soft in quiet trade - Scotiabank

Euro (EUR) is soft, down 0.3% against the US Dollar (USD) and underperforming most of the G10 currencies in generally quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.

ECB's 25bpt rate cut next week's is fully priced

"The currency remains range bound heading into next week's ECB meeting, as market participants look through a widely anticipated and fully priced 25bpt rate cut and hope for medium-term policy guidance in the form of fresh economic projections."

"Markets are pricing in at least one more 25bpt rate cut by year end and policymakers maintained a dovish bias without providing an ultimate landing target for rates. In terms of data, German state-level inflation figures were mixed. All eyes are on Tuesday's release of preliminary euro area CPI data for the month of May."

"The multi-month trend remains bullish, given the sequence of higher highs and higher lows. Support has been observed at the 50 day MA (1.1196), and the recent range has been bound between support in the mid-1.10s and resistance in the upper-1.15s. Momentum is modestly bullish, and the short-term range is roughly bound between support below 1.1250 and resistance above 1.14."