What's next for EUR/USD
MUFG Research discusses EUR/USD outlook and flags a scope for further weakness in the near-term.
"The EUR remains vulnerable to further weakness in the near-term. A further modest improvement in business confidence in the euro-zone PMI surveys for February has brought some temporary relief. The negative impact from COVID-19 on business confidence appears limited so far. However, we remain unconvinced that the recent improvement can be sustained," MUFG notes.
"EUR/USD is now approaching a key long-term support level which comes in at 1.0750. A decisive break below would open the door to another leg lower for the EUR towards the lows put in place back in late 2016/ early 2017 between 1.0400 and 1.0500," MUFG adds.
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