Quotes from Nordea Markets:
-The EUR gained yesterday, helped by better sentiment data in the form of the ZEW index while US data on the whole disappointed once more. The US economic surprise index is the worst in the G10 FX space after the worst start to any year since 2008.
-This has helped put a damper on the strengthening trend of the USD. The market is struggling to decide what matters: on the one hand, an improving Euro-area outlook suggests some growth convergence (EUR-positive) while on the other hand, the theme of monetary policy divergence remains on track (USD-positive).
-In the near term EUR/USD is likely to remain stuck between a rock and a hard place (1.13-1.15). The news flow surrounding Greece will cause volatility in the near term, while the above-mentioned tensions should be resolved in the direction of a stronger USD later on.
