EUR consolidates in quiet trade - Scotiabank

Despite firm Spanish and Italian Services and Composite PMI data for July and mild upward revisions for the German data, downward revisions for the French PMIs resulted in minor downward revisions to the Eurozone Services and Composite data for last month, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR ignores PMI revisions

"Solid gains in French and Spanish Industrial Production for June were also reported this morning. Eurozone data surprises continue to run generally positive, however, which should help keep the EUR outlook underpinned as investors start to anticipate the Fed catching up with the ECB's aggressive policy easing."

"The EUR is consolidating Friday's sharp rally from the 1.14 area and may continue to pivot narrowly around the mid-1.15 area for now. A solid base (defined by a bullish "morning star" pattern) looks to be in for the EUR on the daily chart now, however, at the 1.1395/00. A push back above key, short-term resistance at 1.16 would allow the EUR to regain 1.17+."