Conditions for sustained USD weakness not fully in place

• The bank suggests that EURUSD is overvalued, and that the pair has overshot its fundamentals

• Thinks near-term fair value is closer to 1.10 for EURUSD

• They expect better US data in coming months to push back on excessive rate cut expectations to support the USD

• Believes 100bp of cuts priced for the Fed by year-end is excessive