EUR underperforms on auto, pharma tariff risks – Scotiabank

The Euro (EUR) softened through Asian and European trade following Trump’s auto tariff comments, Scotiabank’s Chief FX Strategist Shaun Osborne notes. 

Euro may extend losses to the upper 1.03s

“European auto stocks are down in response. Investors are also eying Sunday’s German federal election which is expected to deliver a win for the centerright CDU—but may also reflect a jump in support for the far right AfD.” 

“Spot losses through European trade are steadying in the low 1.04 area. The main feature of the short-term chart remains the EUR’s failure to extend through the low 1.05 zone last week after pushing higher from 1.03. After falling through support at 1.0440/50, losses may extend to the upper 1.03s. Support is 1.0375/80.”