The Euro (EUR) has slipped back to the mid-1.03 area after failing to hold gains through the low 1.04s yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR weakens after failing to hold 1.04+ gains

“It’s all headline-driven movement, with little regard for fundamental developments, however limited. The German ZEW investor survey for January showed a minor improvement in sentiment but weaker expectations amid sluggish domestic growth.”

“The EUR is maintaining some of yesterday’s rally. While the failure to hold gains through the low 1.04 area (initial retracement resistance from the EUR’s Sep/Jan decline in the EUR sits at 1.0422) looks a little disappointing, the EUR is holding the break above trend resistance, now support, at 1.0318. A clear move through 1.0420/25 should add to corrective momentum.”