ECB President Lagarde told EU lawmakers yesterday that inflationary pressures were easing and the central bank was on target to reach its 2% inflation goal this year, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

EUR holds range around 1.03

"Lagarde cautioned that trade tensions posed a risk for the outlook, however. Markets continue to anticipate at least another 75bps of easing from the ECB over the balance of the year. Heightened trade tensions in the coming months will add to easing bets and keep the EUR on the defensive." 

"Spot is holding around the mid-point of the wide range that developed early last week. The EUR has found some support below 1.03 so far this week but faces resistance around 1.0355 that low volume/low conviction trading may struggle to overcome. Look for more range trading around the figure for now."