EUR traded mixed against most other major currencies in the European session on Monday, consolidating after a strong rally last week, which was fueled by the latest decision by the European Central Bank (ECB) to nearly double its pandemic emergency purchase program. 

While EUR rose slightly against GBP and USD, it eased off against the rest of major rivals. 

The ECB announced last Thursday that its governing council had decided to increase the Pandemic Emergency Purchase Program (PEPP) by EUR600 billion to EUR1.35 trillion, while extending purchase into the summer of 2021. The announced increase in the size of the PEPP exceeded economists’ expectations of around EUR500 billion.

The EU's single currency was also weighed down slightly by Germany's industrial production data for April. Destatis reported the German industrial production tumbled 17.9 percent m-o-m in April after a revised 8.9 percent m-o-m drop in March, impacted by coronavirus containment measures. That was the steepest monthly fall since the series began in January 1991. Economists had forecast a decline of 16.8 percent m-o-m. In y-o-y terms, the German industrial output plunged 25.3 percent in April, following an 11.3 percent decrease in the previous month. This was the biggest decline on record as well.

Meanwhile, a report from Sentix revealed that the euro area economic sentiment improved in June as the relaxation of measures to combat the pandemic is also bringing economic activity to life. The headline Sentix investor confidence index rose to -24.8 in June from -41.8 in May. Assessment of current conditions advanced from May and expectations jumped to the best value since March 2015.

Investors are now awaiting the remarks of the ECB President Christine Lagarde, who is set to speak at the European Parliament at 13:45 GMT. Last week, Lagarde said the Eurozone’s economy was expected to show an “unprecedented” contraction in the second quarter but was seen to rebound in the third quarter.