Jens Nærvig Pedersen, the senior analyst at Danske Bank, notes that the USD continued to weaken on Friday on the back of weaker US PMIs and dovish comments by the Fed’s Kashkari, with EUR/USD climbing above the 1.1370 level.

• “IMM positioning data shows that investors have started to scale back their stretched long positions in USD and reduce their short positions in the CHF, EUR and JPY. As the market is assuming some probability of the Fed delivering a 50bp cut in July, weak US and global macro figures along with lack of progress in trade talks is needed to sustain current USD weakness.”