The Euro (EUR) is trading softly on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

EUR is trading weak on the day

“Dovish comments from ECB Governor Villeroy earlier appear to be driving spot. He remarked that victory against inflation was in sight, economic risks were tilting to the downside and that the ECB should continue to ease restrictive policy. He also suggested a new round of tariffs might not have as big impact on Eurozone inflation.”

“Note that several other ECB speakers are tap today, including Chief Economist Lane (10.30ET).

Bearish price signals around the early week highs near 1.06 leave the EUR looking prone to further softness in the short– and medium term.”

“Short-term price patterns suggest a minor double top developed around the 1.0605 peaks earlier this week and a clearer break under the low between those tops (1.0524) implies a downside move to 1.0440—effectively a test of key support at 1.0450— in the next few days.”