The Euro (EUR) is soft within its recent range while still trading just above the Friday/Monday lows, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR holds range despite mixed Eurozone data

"Second-tier industrial production figures for the euro area came in better than expected, and Germany’s 2025 fiscal deficit surprised to the downside. France’s final CPI figures were in line with the preliminaries, offering little for policymakers as they prepare for the next ECB decision on February 5th."

"Recent comments from ECB policymakers have leaned more decidedly neutral, shedding the marginally hawkish shift that had been observed in the aftermath of the December meeting. Yield spreads are steady, and risk reversals are providing added support."

"The EUR’s recent pullback has evolved into a consolidation around the 50 day MA (1.1662) with a near-term range bound between 1.1620 support and 1.1700 resistance. We are neutral looking to continued near-term consolidation."