“Market expectations for ECB hikes have been pared marginally but 2Y EZ-US spreads are widening again, providing the drive for a lower EUR (yield gap wider at – 172 bps, the widest since late Mar) and rather suggesting little opportunity for the EUR to rebound at this point.

A clearer loss of support in the low 1.07 range will leave little in the way of a deeper EUR slide towards 1.05 in the next few weeks.

Bearish, short-term trend momentum signals suggest limited scope for EUR rebounds from here (look for resistance in the low/mid 1.07s).”