The EUR is following the dollar-negative tone with a modest 0.2% gain, which has recovered only about a quarter of Tuesday’s decline. As long as EUR/USD trades below 1.1350, economists at Scotiabank expect the pair to eventually break under 1.13.

Euro remains at risk of losses on Russia and Ukraine tensions

“Further to a weak outlook on the basis of monetary policy divergences, the EUR remains at risk of losses on Russia and Ukraine tensions, with the former not letting up in its military pressure.”

“We target a break under 1.13 in the coming weeks to an eventual test of 1.10 as the Fed’s tightening cycle kicks off.”

“EUR/USD will have to break past the mid-1.13 zone and then 1.1375/85 to indicate a possible rebound into the 1.14s.”

“For now, the pair is holding above/around its 50-day MA at 1.1322 that may keep it supported. The big figure and ~1.1280/85 follow as support.”