EUR/USD: USD Repatriation Keeps Sellers In Control

US funds invested abroad have accelerated the repatriation flows into US bonds, which has caused funds back into USD-denominated assets. It continues to occur at a faster pace than foreign investors reducing investment flows into the US, hence the USD is still broadly bid. The price action in the exchange rate portrays these pressure as the price remains under a trendline that originated off March 22nd, time of the shocking German PMI under 45.00. The volume profile has printed yet another double distribution down with the price closing right around the same level as the POC, suggesting that value keeps building to print lower prices heading into Friday all else being equal. The bearish trend still looks like the path of least resistance, even if the German-US bond yield spread argues for an adjustment of the exchange rate into higher territory based on the divergence seen.