A snippet from Bank of America / Merrill Lynch overnight on the euro
(this is a very 'in brief' piece from the note, bolding mine)
Deciphering the EURUSD puzzle
- The USD has sharply weakened as a result of the recent wave of global central bank repricing. despite strong US macro
- EURUSD appreciation has been supported by relative interest rate expectations, however upside potential looks limited for now
- A USD rebound is likely in H1, predicated on corporate repatriation flows and vastly underpriced Fed vs. ECB expectations
