The woes for the euro look set to continue as we are seeing the single currency fall to its lowest since May 2020 against the dollar and more importantly, taking out the 1.1000 level. That leaves the pair rather exposed to a further drop towards 1.0800 next as the technical picture worsens.
I've highlighted the potential for the drop over the last few days and outlined some broader implications for other euro pairs here as well earlier. In turn, this is spurring the dollar to keep firmer with GBP/USD also falling below 1.3300 on the day.
It's tough to see much reprieve for the euro at the moment amid all that is going on. I would say the ECB is going to have an enormous task to jawbone the currency higher next week.
