The Euro (EUR) is up a fractional 0.1% vs. the US Dollar (USD) and a relative underperformer among the G10 currencies as we head into Friday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR/USD holds range as ECB reinforces neutral stance

"Fundamental releases have remained relatively limited, with no material reaction to Germany’s final CPI – printing 1.8% y/y as expected. Comments from the ECB’s Chief Economist Lane have cemented the central bank’s decidedly neutral stance, stating that ‘there is no near-term interest-rate debate’."

"Rate expectations appear to have stabilized following their recent pullback, offering some potential stability for the EUR. Next week’s calendar offers the potential for considerable fundamentally-driven movement as we look to the release of ZEW sentiment (Tuesday) and preliminary PMI’s (Friday)."

"The EUR continues to trade within a well defined ~1.15/1.19 flat range. The latest consolidation around the 50 day MA (1.1662) was resolved to the downside however the EUR appears to have found additional support at the 200 day MA (1.1589). We are neutral looking to a near-term range bound between 1.1580 and 1.1680."