Markets are quickly losing confidence that the ECB will be able to squeeze in another rate hike before the drop in Eurozone activity closes the door on the tightening cycle. This is certainly frustrating the case for EUR/USD to be making it quickly back above 1.10.

The clear near-term range for EUR/USD looks to be 1.0800-1.0930. 

Despite today's slightly better risk environment, we doubt investors will want to chase EUR/USD too much higher and unless there is a sharp spike higher in US initial jobless claims today, EUR/USD may well end up gravitating back towards 1.0800.