With forward-looking indicators pointing at an economic slowdown in key parts of the Euro area, a EUR/USD rally later this year (which is still our base case) should rely primarily on a decreasing attractiveness of the Dollar rather than on an idiosyncratic EUR boom.

It may be yet another rather quiet day in FX today, and barring a major surprise on the US data side – and considering the Eurozone calendar is quite light – EUR/USD should keep hovering around 1.0850/1.0900.