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."

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FXStreet Insights Team

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EUR/USD back around 1.1600 on firmer Dollar

EUR/USD is back under pressure and slipping towards the 1.1600 mark, hovering around multi-week lows as the Greenback extends its recovery. The move higher in the pair comes amid higher US yields and a generalised subdued sentiment in the risk complex.

GBP/USD drops to four-week lows near 1.3360

Moving in step with other risk-sensitive peers, GBP/USD is attracting heavier selling and has slipped below the key 1.3400 support on Thursday to hit fresh four-week troughs. Cable’s decline reflects a firmer US Dollar as investors keep evaluating the latest batch of US data.

Gold remains offered just above $4,600

Gold is giving back part of its recent strong run, managing to bounce off earlier lows and reclaim the area beyond the $4,600 mark per troy ounce on Thursday. The pullback comes as the Greenback regains traction, Treasury yields move higher, and some profit-taking kicks in.