The euro is following broad losses against the dollar. Downside risk persists for the world's most popular currency pair and economists at Scotiabank see EUR/USD nosediving to the 1.10 over the next year.

Support is 1.15 followed by the 1.14

“The ECB’s dovishness will soon see the EUR/USD tackling the 1.15 level and a test of 1.14 should also come with relative ease while we anticipate losses to extend to the low 1.10s over 2022.”

“Near-term risks around climbing contagions in Europe also act as a drag on the common currency.”

“The EUR will have to trade past the mid-1.16s area to counteract downtrend resistance from its mid-year highs, but we expect selling pressure to emerge well before then upon a cross of 1.16.”