TD Research maintains a sell-on-rallies bias in EUR/USD in the near-term.
"Besides this, the USD has had little follow-through on the ISM beat. The US growth story remains a bit murky given the Fed's Nowcasts have highlighted some pullback. While volatile, the Atalanta Fed's Nowcast sits below 1%, which also jives with the NY Fed Nowcast," TD notes.
"This backdrop should reinforce the two-way moves in the buck, leaving the focus on some of the aforementioned relative value themes. EUR's a fade into 1.12," TD adds.