Investors in the euro should tread with caution, Geoffrey Yu, FX strategist at UBS told CNBC on Friday, warning that concerns over political stability in some of the euro zone's biggest countries could send the currency sharply lower again.
"One really strong point of complacency that the market has had over the last few weeks is to wait until the last minute before pricing in political woes. Now, that's really starting to impact the euro," Geoffrey Yu, FX strategist at UBS, told CNBC on Friday.
The single currency has fallen to a six-week low against the dollar, falling to $1.3166 on Thursday, far below a 15-month peak of $1.3711 seen at the start of February. The decline came as euro zone purchasing managers' data (PMI) released on Thursday showed a downturn in the region's economic activity and investor concerns over Italian elections this weekend rattled confidence.
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