EUR underperforms amid broad USD losses – Scotiabank

Euro (EUR) is quietly consolidating in a tight range in the 1.09s, eking out a marginal gain against the US Dollar (USD) while underperforming all the G10 currencies in an environment of broad-based USD weakness.

EUR consolidates on the day

"The data calendar remains light, and focus is on next Thursday’s ECB decision where some policymakers are making a renewed case for easing in response to recent trade tensions. The EUR’s loss of support from spreads is notable, and our fair value estimate has fallen to the lower 1.07s from 1.10 on April 3."

"EUR/USD is still consolidating last week’s gains and trading in a relatively tight range roughly bound between support just below 1.09 and resistance above 1.11. Momentum is bullish but fading and the RSI is offering negative divergence, in that it failed to confirm last week’s fresh highs in spot."