The Euro (EUR) has made a little progress on the US Dollar (USD) over the course of the session but has backed off of its earlier highs just under 1.17, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Riskies reflect bullish sentiment

"EUR/USD risk reversals reflect still bullish EUR/bearish USD underlying sentiment. The 3M risk reversal reflects a 0.75 vol premium for EUR calls, back to the sort of premium seen through late June before the USD sell-off stabilized and reversed marginally. Expect EURUSD to remain well-supported on minor dips."

"Solid gains in the EUR over the past few days brough spot close to 1.17 earlier before a mild dip developed in late morning European trade. I expect spot to remain well-supported on minor dips. Intraday trend momentum is bullish and the daily DMI is turning mildly supportive as well."

"The solid EUR rebound last Friday from the 1.14 area still has potential to extend through 1.17 and retest the recent highs around 1.18 in the near term."