Easy come, easy go.
The euro surged in European trading despite a dismal German manufacturing PMI for February but has since completely retraced the move. EUR/USD rose as high as 1.0888 but is now down to 1.0816 as it’s hurt by a broad US dollar rally.
EURUSD 10 mins
Given the strength in US economic data this year and the slide in European (especially German) numbers, the market is pricing in a slightly more dovish path of interest rates for the ECB. I think that still has some ways to go and I think the terminal rate in Europe will settle at a much lower level.