EURO FUNDAMENTAL BACKDROP
The euro found some support this Tuesday after a poor performance against the greenback yesterday. The euro remains vulnerable to downside risk as fundamental headwinds significantly outweigh any sort of positivity at the moment as the eurozone heads into the winter months. From my perspective, markets are looking for a change in the Fed’s current stance (hawkish) or a marked reduction in inflationary pressures to change the tide for EUR/USD. Until then, I expect the euro to stay depressed.
