EUR marginally weaker – Scotiabank

Euro (EUR) is down a marginal 0.2% against the US Dollar (USD), trading quietly and consolidating within a narrow band at the lower end of its three-week range, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GDP surprises to upside and German state-level CPI data are strong

"The euro area’s advance Q1 GDP release was marginally better than expected on both a q/q and y/y basis (0.4% vs. 0.2%, and 1.2% vs. 1.1% respectively). The data don’t appear to have had any material on ECB rate expectations with markets still pricing in one full 25bpt cut at the June meeting."

"The latest period of consolidation has not yet violated the bullish trend, as this would require a break below the mid-1.12s. The softening RSI is worrisome however, and hints at waning momentum. Near-term support is expected around 1.1300 and near-term resistance is expected above 1.1500."