The drop did see EUR/USD reconnect both with short-term rate differentials (still wide at nearly 130 bps in the Dollar's favour) and also the still steeply inverted US yield curve. Both of these variables have to change if the EUR/USD is to embark on a big cyclical rally.

Back to today, EUR/USD could drift down to support at 1.1100/1115 but that may well be the lower end of the range heading into next week's central bank meetings.