A note from Scotia late last week with a level to watch in the euro.
In brief:
- EUR sentiment has been weighed by soft economic data from the Eurozone and signs from the ECB that its policy tightening cycle is complete.
- An overhang of long EUR positioning among investors and weak price trends suggest the near-term risk at least may be geared to more EUR losses.
- A move to new lows for the year (below 1.0635) would add to the weak EUR tone.
