EUR is seeing marginal gains - Scotiabank

The Euro (EUR) is entering Monday's NA session with a marginal 0.1% gain as it attempts to extend its modest recovery from last week's lows, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR sees support from spreads ahead of CPI Wednesday

"Yield spreads are showing signs of stabilization following their pullback from late September, offering fundamental support as market participants assess the outlook for relative central bank policy (specifically the Fed)."

"Near-term domestic risk lies with the release of preliminary euro area CPI data on Wednesday, with expectations of a slight increase in the headline figure (exp. 2.2% y/y vs. 2.0% prev.). Core is expected to remain unchanged at 2.3% y/y. ECB President Lagarde is scheduled to speak on Tuesday and is likely to reinforce the central bank's neutral messaging on rates."

"The EUR is showing signs of stabilization with a modest recovery off of support in the mid-1.16s. The EUR is back above its 50 day MA (1.1680) and appears to have found support at the descending trend line drawn from the July highs. We see nothing in terms of resistance ahead of 1.18 and look to a nearterm range bound between 1.1680 and 1.1780."