USD: The End of a Consolidation. Bullish. We believe that the USD correction is likely nearing an end. This is less due to strength in US data than it is to the dovish comments from the EUR. That said, we do expect US data to pick up going forwards, and are encouraged by the strength in the housing print this week, which led us to revise our 2Q GDP forecast higher. What’s more, given the extent of disappointment with US data recently, we believe the bar for upside surprises is low, which should add to USD strength. EUR: Approaching a Turning Point. Bearish. We believe that EUR strength is likely to capitulate in the ... (full story)