The Euro (EUR) is soft, down a modest 0.3% against as it trades somewhat defensively with a slight pullback from Tuesday’s fresh multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Fundamentals remain bullish

"The final euro area CPI figures were generally in line with expectations, printing 2.0% y/y on headline (vs. 2.1% exp.) and 2.3% y/y on core. ECB communication remains broadly neutral as policymakers signal their preference for stability. We see scope for further fundamental gains in EUR as markets fade their pricing of ECB cuts."

"The technical picture is bullish following Tuesday’s push to a fresh multi-year high. The RSI is confirming and still remains well shy of overbought levels, offering scope for further upside. We see no meaningful resistance ahead of 1.19, and the next major resistance level around 1.2250. We look to a near-term range bound between 1.18 and 1.19"