EUR drifts back under 1.17 but well supported on dip – Scotiabank

The Euro (EUR) is marginally softer on the session—but trading nicely off the low as our session gets going, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Further consolidation ahead of another push higher

"Price action suggests some short-term long liquidation in European trade after spot edged back under 1.1690/00. Eurozone data did not help. Q2 GDP data was unrevised at 0.1% Q/Q (1.4% Y/Y) while June Industrial Production was weaker than expected (-1.3% M/M), with strong gains in May revised downward."

"Minor drift in the EUR through the upper 1.16s does not undermine the general lift in spot since the start of the month. If anything, losses from yesterday’s peak look to be a consolidation ahead of another push higher. Support is 1.1635. Regaining 1.1710+ should see spot push towards 1.1750."