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According to FX Strategists at Scotiabank, the pair’s upside focus remains on the 1.1500 region.

Key Quotes

“Eurozone CPI was finalized at 2.1% Y/Y, which will be of modest comfort to ECB policy makers, while the ECB reported current account surplus of EUR23.5bn for Jun, narrower than the upwardly revised surplus of EUR 24.4bn seen in May. Data reflect a significant jump in net portfolio and foreign direct investment into the Eurozone in the month which should be modestly supportive at least for the EUR”.

EURUSD made modest progress earlier in the session but EUR gains were capped in the 1.14 region, close to yesterday’s peak (and minor trend resistance at 1.1410). Intraday gains through 1.1415 should see the EUR extend modestly but we still think regaining 1.15 is needed to effectively stabilize or improve the technical picture. Weekly patterns suggest the EUR sell off has stabilized”.