How to trade in a challenging FX environment – BAML

Bank of America Merrill Lynch thoughts on FX right now
European currencies have reversed some of their April gains during the first days of the new month as markets continue to grapple with the various cross-currents which are driving FX markets at present. The appreciation of EUR/USD appears to have gone unabated as ECB council members have had opportunity to verbally intervene in EUR/USD as it moved above 1.15 but have so far failed to do so. Part of this reluctance may stem from a growing realization that verbal intervention has become incrementally less effective but also an acceptance that the move reflects broad based USD weakness.