We expect the EUR to remain a sell on rallies against the USD next week on the following 3 reasons: First, according to ECB President Draghi the so-far expected recovery for the second half of the year is subject to downside risk and incoming data will be very closely watched. At the same time he stressed that the ECB is ready to act if needed. Second, risks to inflation are regarded as broadly balanced. However, should incoming data continue to weaken this will make a case for inflation risk to fall. On Friday ECB Executive Board member Coeure said that inflation is dropping steadily. Third, With rate expectations ... (full story)