A quick snippet via BNP on their outlook for the second half of the year

Expect the euro to strengthen versus the dollar

  • USD is expensive on valuation grounds
  • the Fed will ease

Thus see EUR/USD at:

1.16 for Q3

1.20 for Q4

More:

Expect the Fed to cut rates twice in H2 due to

  • a slowing economy
  • subdued inflation
  • heightened uncertainty

A decline in the 10-year treasury yield will only be moderate with markets pricing in rate cuts

On the ECB, BNP expect rates to remain unchanged through 2020, but:

  • slower growth
  • subdued core inflation