Euro trades soft as EUR/USD consolidates – Scotiabank

FXStreet Insights Team FXStreet

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."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.