In our last take on the euro in April, we wrote that the bullish case for the currency was running out of drivers. Specifically, we wrote that decelerating Eurozone growth (in rate-of-change terms), changes in trading patterns and overly bullish speculator sentiment was likely to weigh on the euro in the future. At the time, EUR/USD was trading around 1.23, near its 2018 high just above 1.2550. As a ‘risk on’ currency, the euro tends to weaken when Eurozone growth is decelerating in rate-of-change terms. Looking at the data, Eurozone growth peaked in late 2017. However, the euro did not start weakening until the ... (full story)