EUR/USD drops to mid-1.04s. Economists at Scotiabank expect the pair to extend its decline toward the year-to-date low of 1.0350.

EUR/USD ends its two-week consolidation period

“Risk-off sentiment, widening core-periphery spreads, a more hawkish Fed, and Eurozone growth concerns will likely offset augmented ECB hike bets in the near-term and keep the EUR on the backfoot as the current leg lower eyes the year-to-date low of 1.0350.”

“The EUR’s steep three-cent-plus drop from above the mid-1.07s last Thursday has wiped out a sizable share of its H2-May gains, ending its two-week consolidation period with a sharp slide that points it towards its year-to-date low of 1.0350.”