Research Team at BBH, suggests that the euro is being dragged down by Brexit fears, though to a lesser extent than sterling. Key Quotes “The euro is off 1.3% this week. Today's losses have seen it fall back below $1.10 for the first time since 3 February. While the UK may suffer on Brexit, there is some concern about the fallout for the eurozone. There have been some reports warning that Brexit (which would be the first departure from the EU) could be a catalyst for others leaving, or injecting uncertainty by holding their own referendum. The euro area has challenges outside of the UK and Brexit. The refugee crisis is proving intractable. The flash PMI warned of weaker output, orders, and prices. While Draghi is talking a tough game, the scars from the market's disappointment with the move in December are still fresh. While participants are paring back euro exposure, they do not seem to be piling into shorts as they did last November. The euro's push below $1.10 has extended to almost $1.0975. We pegged the initial target near $1.0950 yesterday, but see the risk of a return to the lower end of the previous range which is found near $1.08.” For more information, read our latest forex news.