The Euro (EUR) is up a modest 0.2% against the US Dollar (USD) and entering Friday’s NA session with renewed support as it climbs back toward the upper end of this week’s range and pushes toward Tuesday’s fresh multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

ECB comments remain neutral

"Sentiment appears to be dominating as markets ignore soft euro area PPI and unexpectedly weak German factory orders data. Comments from ECB President Lagarde and GC Villeroy have leaned neutral, though the latter has added to the chorus of policymakers highlighting the disinflationary impact of EUR strength. The outlook for relative central bank policy remains supportive as we look to a neutral ECB and a dovish Fed."

"The trend is bullish but momentum is overbought and EUR may be due for a near-term pause. The near-term range is bound between support around 1.1720 and resistance above 1.1820."