Small signs of a pullback in European equities (CAC 40) were further confirmed by strong selling seen in EUR/CHF. We cannot rule out the risk of further weakness, especially as the JPY continues to trade with a corrective, bullish tone Small signs of a pullback in European equities (CAC 40) were further confirmed by strong selling seen in EUR/CHF. We cannot rule out the risk of further weakness, especially as the JPY continues to trade with a corrective, bullish tone. Meanwhile, USD weakness has become more pronounced, as even the ailing commodity currencies are staging a relief rally. However, some momentum indications for EUR/USD and cable are approaching overbought, and we expect bearish USD follow-through to be limited in these pairs.
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Barclays