Euro has seen follow through selling - BBH

The euro has seen follow through selling today after the short squeeze ran out of steam near $1.0640 notes analyst at BBH.  

Key Quotes

“With today's losses, the euro nearly retraced 61.8% of its gains off last week dip below $1.05, which comes in near $1.0550.  The intraday technicals warn against chasing the euro lows and suggest potential back into the $1.0600-$1.0620 area.  However, the two-year interest rate differential is rising to new multi-year highs today near 218 bp, which is eight basis points higher than last week's close.  This acts, we argue, as an important drag on the euro.”