Although some participants would point to certain improvements on the data front and comments from the central bank as underpinnings for the recovery, the common currency has been buoyed by a sell-off in USD. 

The perspectives for the Eurozone remain tepid to say the least and we continue to believe the ECB will front run the Federal Reserve for rate cuts. As such, the currency is expected to experience a bout of weakness until we get a more forceful change in stance from the Fed.