One of the drivers of the euro since mid April came from the bond market: the sell off in German bunds as well as other euro-zone bonds squeezed out shorts and made the euro more attractive.
The team at BNP Paribas examines the situation and focuses on real rates vs. EUR/USD and this points to significant vulnerability for the pair:
Read the rest of the article Flashing Red for EUR/USD – BNP Paribas