EUR/USD: BNP expects decline to continue, and says today's US GDP could help

In a note published today, BNP notes that the USD rebound continues amid improved risk sentiment, rising US stocks and firmer rates, as well as strong US data, which should help keep the current rebound alive.

"US data will be the most important factor regarding the dollar's ability to extend its rebound. Our economists expect that Q2 GDP - expected today - will be revised up to 3.4%, against a previous estimate of 2.3%.

Our economists also share the same opinion as Governor Dudley of the New York Fed, who recently said that a rate hike in September was now unlikely.

In the end, we therefore expect a further fall of the EUR/USD, especially if the comments made by the ECB continues to gradually become more dovish."