Dahlman Securities: The US and Europe will further pull back in the short term.

Jin10 data reported on May 30th that strategists at TD Securities stated that the euro against the dollar will further pullback in the short term. They noted that the interest rate differential is moving in favor of the dollar, which increases the cost of protection against currency falls. Recent economic data has also turned favorable for the dollar, and there is "almost no evidence that asset allocation will shift away from the U.S." They also indicated that these factors increase the risk of a euro fall in the coming weeks, especially if the market focuses again on the interest rate differential. TD Securities expects the euro to dollar exchange rate to fall from the current 1.1347 to 1.11 in the second quarter.