TD Securities - "The EUR has consolidated in a tight range along with the rest of the majors overnight, as comments from the ECB’s Nowotny (reaffirming what forward guidance suggested: that rate hikes are very far off and rate cuts are possible) and slightly softer Eurozone CPI receiving little reaction from the currency. The widening in German-US short term spreads that we’ve been pointing out all week has also stalled, but is still commensurate with a lower FX spot rate. It’s also worth noting that the options market continues to show greater demand for downside protection in EUR/USD, with risk reversals reflecting a growing premium for puts. On the charts, trend support and the 40-day moving average have provided a short term base in the mid-1.32 area, but we continue to see room for more downside from here. We prefer selling rallies toward the upper 1.32s, although opportunities may be scarce."