EUR outlook: Sell rallies against GBP and JPY as market focus returns to EZ banking sector

• EUR/CHF could join EUR/JPY (see JPY outlook) in a deeper retracement, with 1.2215 the target here;
• EUR/GBP is also still solidly in a bear trend and selling rallies is heavily favoured;
• Market focus is returning to the EZ banking sector and renewed ‘flight of funds’ from the EZ to London or Zurich cannot be discounted;
• EUR/USD remains in a bullish trend but has lost momentum.

My medium-term sense is that the EUR and the USD will re-ignite their race-to-the-bottom.