The Euro is sliding toward the mid-1.13s against the US Dollar, hitting levels not witnessed since May 2025, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The currency weakness stems from increasingly dovish European Central Bank policy expectations that are weighing on EUR valuations across major pairs. Traders are repositioning amid growing speculation that the ECB may adopt a more accommodative stance compared to other major central banks, creating downward pressure on the single currency.
The move toward 1.1350 represents a significant technical level that currency traders and forex brokers are closely monitoring for potential breakdown or support. Financial institutions with euro exposure and multinational corporations operating in the eurozone should prepare for potential margin pressures and hedging adjustments as the currency tests these multi-month lows. The divergence in monetary policy expectations between the ECB and the Federal Reserve continues to drive the pair’s direction.
FXnCO Insight
Forex traders should watch the mid-1.13 level closely as a breach could accelerate euro selling and trigger stop-loss orders, while fintech platforms should prepare for increased volatility in EUR pairs.
Source: FXStreet