The Euro can hold firm in the very short term following the US employment data. Nevertheless, the overall risks still suggest that only very limited upside is realistic while the potential downside is much more substantial. There is a high risk that Euro-zone risk premiums will increase again as markets fear another Italian crisis phase. Despite disappointing payroll data, the Fed is likely to taper bond purchases slightly at the September meeting and the positioning bias is now less of a dollar restraining factor. Overall, EUR/USD is a sell above the 1.33 level and EUR/GBP is also a sell above 0.87. The latest CFTC ... (full story)