The Euro (EUR) is holding a relatively tight trading range in the low 1.09 area, Scotiabank’s chief FX strategist Shaun Osborne notes.

EUR needs a break above 1.0950 to continue upwards

“German data reflected some mixed news for the economy. June Industrial Production rose a stronger than expected 1.4% in the month (although May data was revised lower) while the trade balance slipped in June with exports contracting 3.4% in the month.”

“The EUR ignored the data and continues to look relatively comfortable with the support of somewhat narrower eurozone/US yield differentials.”

“Narrow range trading reflects a consolidation in spot trends after the EUR’s rapid gains last week from below 1.08. Underlying trends remain favourable (bullish) for the EUR for now but gains may have to resume fairly quickly (towards 1.0950+) to sustain the positive backdrop. Support is 1.0875.”