EUR: Near-term risk extends toward $1.1760 - BBH

Analysts at BBH point out that on November 7, the euro fell to almost $1.1550, which is its lowest level since July 21 and snapped back to nearly $1.1680 ahead of the weekend, which is the middle of a band of resistance seen between $1.1660 and $1.1700.  

Key Quotes

“The MACD and Slow Stochastics are turning higher, warning that the upside correction could persist.  The near-term risk extends toward $1.1760.  That said, the US two-year premium (over Germany) widened to 240 bp, the most since 1999.  The 10-year differential is consolidating around 200 bp.  We expect the interest rate differentials will limit the scope for a euro recovery.”