The Euro (EUR) is up a modest 0.2% vs. the US Dollar (USD) as we enter Monday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR finds support near 200-DMA

"The EUR appears to be attempting some stabilization following its pullback from late December that has dragged it to sub-1.16 lows testing levels last seen in late November."

"The EUR’s recent weakness has been fundamentally driven, reflecting a narrowing of interest rate differentials between Europe and the U.S.. ECB rate expectations have softened on the back of weaker data, and have reflected the subsequent shift in policymakers’ communication and their pivot toward a decidedly neutral stance over the past couple of weeks."

"The EUR looks to have found trend support at its 200 day MA (1.1590), and we continue to highlight the flat 1.15/1.19 range that has bound much of the EUR’s movement since August. We are neutral absent a break back above the 50 day MA (1.1663) and look to a near-term range bound between 1.1580 and 1.1680."