The Euro (EUR) is soft and entering Wednesday’s NA session with a modest decline against the US Dollar (USD), having recovered from a short-lived bout of early Asian session weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.

PMIs mixed w/better mfg and softer services

"The release of preliminary PMI’s has been mixed, with a better than expected (though still sub-50) Manufacturing print and a disappointing and unexpectedly contractionary (sub-50) Services print for both the eurozone aggregate and German releases."

"These releases were the highlights of the week, leaving markets to focus on central bank headlines out of the IMF meetings in Washington. Tuesday’s comments from President Lagarde focused on downside risks to growth but offered little clarity in terms of her thinking on trade tensions and their impact on inflation."

"The broader trend is still bullish however we can’t help but notice EURUSD’s inability to break from the 1.14 congestion level over the past 8 sessions. We look to near-term support in the mid/ upper-1.12s and note recent resistance above 1.15/1.1550. The RSI’s slow drift lower hints at a loss of momentum and follows the negative divergence that failed to confirm Monday’s highs in spot. Look to near-term consolidation."