EUR/USD trade has been a little choppy, within a limited range, so far on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR trades in tight, choppy range

“There were no data reports of note from the Eurozone this morning and there were no major comments from ECB policymakers. Spot chop may reflect a battle between bargain hunter interest around the 1.08 area and the drag on the EUR from wider short-term spreads (EZ/US 2y spread to –186bps today). Note that ECB President Largarde is speaking with Bloomberg at 10ET.”

“The EUR remains oversold but the charts continue to reflect softness, with spot holding near the base of the recent consolidation range. The EUR has completed the measured move lower I thought would result from the break under 1.10 around the turn of the month but a rebound—above 1.0875—is needed to signals scope for even short-term gains from here. Support is 1.0780/00.”