Preliminary Eurozone PMI data for February were mixed to slightly softer, weighing on the EUR somewhat in European trade, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Mixed Eurozone PMIs add to soft tone

"French Services and Composite readings missed expectations as did the German Services data, entailing lower than expected results for the same Eurozone figures. German and French Manufacturing data were a little better than forecast, helping the Eurozone Manufacturing index to a small beat (47.3) versus expectations and the January data. Sluggish growth momentum supports the outlook for a little more easing from the ECB ahead."

"The EUR’s retest of the 1.05 area appears to have resulted in another rejection. Intraday chart signals reflect a small top/reversal developing overnight from the 1.0505 area. Spot may drift back towards support at 1.0410/15 (Wednesday’s low) in the short run—but perhaps not much more than that amid weak trend momentum signals on the intraday and daily oscillators."