The euro is losing further ground on the week as traders pare back ECB rate hike bets and also as European assets are being hit amid the sanctions against Russia. To make matters worse, rising energy prices won’t provide much comfort on the inflation front and will also weigh heavily on consumers – muddying the outlook for later in the year.
EUR/USD is now down to 1.1080, its lowest since May 2020. From a technical perspective, if this break holds, it is a bit of a slippery slope towards 1.1000 next for the euro.
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