A lot of people have been betting on the euro to gain this year and if they keep getting disappointed, there's a risk they'll abandon that bet. |
Sterling is looking pretty vulnerable. People have still not really factored in that the U.K. economy remains very weak. |
The market's beginning to look at rate hikes sooner than expected on the view that inflation and growth is picking up. This will help the euro because of the current focus on rate differentials. |
We're going to have to get more solid indications that the ECB are preparing to raise rates again soon before people start buying the euro aggressively. |