Eur-Usd may See Additional Squeezes Higher in Coming Days

Eur-Usd may See Additional Squeezes Higher in Coming Days


-The US employment data will be quickly followed next week by the German Constitutional Court's crucial decision on Europe's bailout facilities and the Fed's own policy decision.
-These events may limit the degree of follow-through price action, but we think that as far as the ECB's ability to influence the euro (EUR) is concerned, the good news about the ability to backstop the region is now in the price.
-This removes an important tailwind for the EUR and refocuses our attention on downside risks. EUR-USD may see additional squeezes higher in coming days, but we think these will lack both vigour and sustainability. We expect the primary trend lower to resume.