EUR is a relative outperformer - Scotiabank

The Euro (EUR) is up a marginal 0.1% against the US Dollar (USD) but still outperforming most of the G10 currencies into Friday's NA open, attempting some stabilization following a period of significant underperformance against the USD with a near-1.5% decline over the past week or so, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR is attempting stabilization with focus on France and ECB

"The EUR's weakness has been driven by a combination of sentiment and fundamentals, with a focus on France's ongoing political situation compounded by worrisome trade and industrial production figures from Germany."

"The ECB has maintained its neutral messaging, in speeches and the minutes of the most recent meeting delivered on Thursday. France-Germany spreads have pulled in from their recent wides, signaling some confidence in President Macron's ability to navigate the country's challenges with a new Prime Minister. The stabilization in euro zone-US spreads is also important, lending support to the EUR."

"EUR/USD appears to have found some near-term support around 1.1550 and the RSI looks to be steadying well above the oversold threshold at 30. In terms of support, we see nothing between current levels and 1.15, followed by the August 1 low around 1.14. Equally, resistance appears limited between current levels and the mid/upper-1.16s. We look to a near-term range bound between 1.1520 and 1.1620."