Euro: Recovery capped by French spread tensions against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret highlight EUR/USD around 1.1212, noting the Euro (EUR) is underperforming peers as Eurozone bond-market tensions persist. The elevated French OAT/Bund spread reflects ongoing social and fiscal strains. While the German ZEW survey shows some improvement in current conditions, expectations softened, and the bank characterizes the Eurozone economy as remaining in a slow recovery phase, limiting Euro (EUR) upside.