The Euro (EUR) is weak, down 0.5% against the US Dollar (USD) and underperforming the G10 currencies as we head into Wednesday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

EUR is underperforming with news of Dutch no confidence vote

"Political uncertainty is in focus as market participants consider the news of a no confidence vote in the Netherlands, compounding existing concerns related to France. There have been no data releases and near-term ECB risk lies with Thursday’s ECB minutes and a scheduled speech from Rehn."

"The RSI remains close to neutral, having just broken below the dividing threshold at 50. The fresh local low is notable however, and shifts the focus to the Aug 1 low around 1.14. We remain neutral—for now—looking to a near-term range bound between 1.1550 support 1.1650 resistance."