EUR: Finding little traction - BBH

Analysts at BBH suggest that the euro is finding little traction as the euro stalled near $1.0630 yesterday, as it did last week as well.  

Key Quotes

“Since that high, the euro has slid a full cent before finding support near $1.0525.  Two weeks ago, the US premium over Germany on two-year money was less than 200 bp.  It is now near 215 bp, a new extreme since the late 1990s.  We suspect North American dealers will be reluctant to sell the euro without first squeezing the intraday shorts established in the European morning.  The $1.0560-$1.0580 area may offer initial resistance now.”