💶🔻CESI Differential Points to EUR/USD Downside Risks: Cable FX Macro

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• EUR/USD spot has come off its YTD highs of 1.1033 as dollar strength sent the pair down for about a 400 pip run, last 1.068

• The move lower is interesting, giving markets have been pricing an earlier Fed peak and higher for longer ECB

• The Citi Economic Surprise Index differential between the eurozone and the U.S. is now favoring the dollar as the U.S. CESI rises

• Further macro strength from the U.S. could pose downward risks for the pair