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Analysts at TD Securities explained  that conditions appear deeply oversold in EUR/USD and we expect a broad 1.13/1.1450 range to be respected.

Key Quotes:

“We continue to think that EUR/crosses like EUR/CHF and EUR/JPY will provide important directional cues given they are one of the few remaining reserve current account surplus currencies.”

“We are mindful of price action in USD/CAD; so far the pair has broadly respected 1.3050/1.32 range. The latter coincides with notable trendline resistance from the YTD highs. A move through the upper bound could trigger a position realignment. A domestic catalyst – CPI later this week and/or GDP later this month – may be the necessary catalyst however.”

“Treasuries continue to keep a close eye on EM sentiment for direction, but even strong US data was unable to push yields higher. The focus will remain on broader equity sentiment for direction toward the end of the week.”