EUR/USD Could Reach 1.17-1.18 By Late Summer

From their climax lows in March, and following 2 years of a rather linear downtrend, most cyclical currencies vs the USD have performed a strong rebound, i.e. AUD, NZD, GBP. EUR/USD is also following suit especially from Mai as the premises of a coordinated fiscal plan in the EuroZone were announced. We now believe that EUR/USD along with other cyclical currencies could continue higher vs the USD into late Summer, with perhaps a short intermediate correction late July/early August