We suspect the euro/US dollar has seen its bottom at 1.1510 and is unlikely to re-test it in the coming week. With the Italian political situation stabilising, the eurozone risk premium should now be less of a negative driver of EUR/USD (the risk premium has already narrowed from 4% on Tuesday to 2.5% currently). The euro should obtain some support from the forthcoming domestic economic data. Following the solid German IFO and eurozone CPI over the past two weeks, the eurozone April retail sales (Tuesday) and the batch of German industrial data should point to a rebound of the economy in the second quarter and in ... (full story)