EUR/USD has drifted a little lower over the course of the session so far, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR rebound momentum stalls

“Market participation has perhaps weakened ahead of the US jobs data, the weekend and the US election Tuesday, with no major data from the Eurozone to drive sentiment. More to the point, perhaps, is the fact that the steady narrowing in EZ/US short-term spreads that helped lift the EUR over the past week has stopped and reversed a basis point or so late in the week.”

“The EUR’s push through resistance at 1.0875 failed to give spot gains the additional boost I thought it might. Gains were capped around 1.0890 and now, spot’s drift lower risks extending in the short run if the market eases below 1.0845 minor support on the session.”