The bank
thinks that EURUSD is expensive at current levels, but unless we get strong
guidance for deeper cuts after June the impact might be more short-lived. I share their sentiment in this regard.

They think
that the pair would need an equity-sell off as well as an official start to the
ECB’s rate cutting cycle for a move lower.

There is a
greater chance of a move towards 1.07 compared to a break higher to 1.09.

Personally, I think a lot of bad news is priced
for the EUR, but time will tell.

This article was written by Arno V Venter at www.forexlive.com.