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Euro stays soft as EUR/USD nears 1.1325 support

Scotiabank links the euro’s weakness to widening front-end spreads and EU concerns around a potential US diesel export ban, despite denials.

Reported · Written up by our desk · Major Pairs

FXStreet cited Scotiabank strategists Shaun Osborne and Eric Theoret saying the euro (EUR) has remained soft, with front-end spreads widening and sentiment weighed by European Union concerns about a possible US diesel export ban, even as officials have denied it.

The strategists noted that sentiment data have diverged unusually from German GDP since 2024, but improving IFO readings better align with firmer growth.

On the technical outlook, Scotiabank sees EUR/USD in a bearish trend, with losses expected to extend while spot levels approach mid-year lows. They expect support to firm around 1.1325 to 1.1350.

Latest closeEUR/USD 1.138 ▼0.6%

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