USD: More Room for Tactical Retracement. Bullish. Nonfarm Payrolls Recent data has been largely soft, with even the strength in ECI reflective of one-off factors rather than a shift in the underlying trend. This has kept USD under pressure. We think recent price action could continue in the next few weeks so long as data remains soft. However, we do maintain our bullish USD view over the medium term. US growth should pick up as temporary factors roll off, and growth elsewhere may be improving, but from very low levels, making the US still more attractive. EUR: Monetary and Political Pressures. Bearish. German yields ... (full story)