EUR steady on the day, firmer on the week – Scotiabank

The Euro (EUR) is little changed on the day against the US Dollar (USD) but has racked up a solid net gain on the week, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

Eurozone Q4 GDP revised up

"Eurozone GDP rose 0.1% in Q4 after an upward revision to the initial estimate—better but hardly anything to shout about. Stronger growth from the Netherlands and Spain helped lift growth, with the major core economies (Germany, France, Italy) flat or weaker." 

"Spot gains are stalling in the upper 1.04s, leaving the EUR a little shy of the late January high at 1.0533 and retracement resistance at 1.0551 (38.2% of the EUR decline from 1.12 to 1.01) that figure the major block on a deeper EUR rebound." 

"The EUR will need to keep generating solid support on dips (after seeing solid demand below 1.04 yesterday) to sustain the near-term uptrend. Support is 1.0375/85."