More from BNP, they say the "EUR rebound starting to run out of steam"
Expect the German IFO data (due out later today, during the Europe session) to strengthen - see it rising to 107.3 9ps. that's the consensus Bloomberg forecast too ... prior was 106.8)
- EUR rebound is starting to show sign of saturation - evidenced by EURUSD's failure to spend any quality time above 1.10
- We believe these levels will continue to attract shorts from some of the players who lightened up on positioning after last week's FOMC but also will probably speed up the underlying long-term investment reallocation flow from the EUR to higher-yielding alternatives