The euro weakened against the dollar on Friday, reflecting market anxiety over the lack of progress in Brexit negotiations. The persistent uncertainty surrounding the terms of the UK’s departure from the European Union is casting a shadow over the Eurozone economy.

Brexit Impasse Fuels Euro Weakness

Negotiations between the UK and the EU remain deadlocked on several key issues, most notably the Irish border. The absence of a clear path forward is unnerving investors and putting downward pressure on the euro.

Key Factors Influencing the Euro

• Brexit Negotiations: The primary driver of euro volatility.
• Economic Data: Eurozone economic indicators are being closely scrutinized.
• Monetary Policy: The European Central Bank’s (ECB) stance on interest rates.

Analysts suggest that the euro’s near-term performance will largely depend on whether a Brexit deal can be reached before the UK’s scheduled departure date. A no-deal scenario could trigger further declines in the currency.