They note that EUR/USD has been in a big 2 figure range between 1.28-30 since September 24th and they expect this relative stability to extend into next week. In his meeting today, Draghi gave no clear signal on the next policy step which he may undertake.
They finish “We still expect an additional rate cut, but December remains the earliest month for that. Of course, like with USD/JPY above, tomorrow’s employment report from the US will be important. However, QE3 has only just begun and hence although a strong report is favourable for the dollar, one strong report is unlikely to alter QE3 expectations dramatically.”