The Euro (EUR) is trading a little lower overall on the day but is holding a net gain on the week, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR drifts on the daily chart

"Markets may need a new impulse to extend EUR gains through the 1.17 peak reached this week and put the 1.18 zone within reach in the short run. Looking ahead, pressure on the Fed for easier monetary policy will weigh on the USD and prompt some additional narrowing in EZ/US spreads. Diversification away from the USD will add to bullish EUR momentum in the medium term."

"Spot is consolidating in a 1.16/1.17 range for the moment. Yesterday’s price action set a 'doji' candle on the daily chart which may indicate that EUR gains have stalled for now but positive trend momentum signals suggest limited scope for EUR losses to extend. Key support is 1.1590/00."