Credit Agricole has their eye out for a squeeze in EUR/USD after the 200+ pip fall this week. They say that there’s a risk from Buba’s Weidmann who is speaking at some point today.
They see the potential for a mild squeeeze towards 1.3150 but remain bearish overall.
We’ll keep our ears out for Weidmann as I’ve got him on one calendar as speaking this morning, but there’s been nothing out. There’s a risk that he could add some usual German negativity to the ECB’s plans but he should be happy with Draghi’s recent stronger “structural reform” rhetoric.
At the moment, with the failure up at 1.2950 seeing us fall to 1.2908, 1.3150 seems a long way away.
