In view of strategists at Westpac, the pair could see a squeeze higher in case the ECB fails to meet (or surpass) expectations at its meeting next week. Key Quotes “A thicket of support in the 1.07-1.08 range likely provides only fleeting assistance ahead of the 10 March ECB”. “A 10bp deposit rate cut is more than fully priced and further out a cumulative 30bp in cuts through year's end is discounted”. “ECB likely struggles to over-deliver leaving EUR vulnerable to a squeeze in the wake of their meeting but beyond that the focus should be on unmistakable signs that the US has returned to a position of clear growth leadership vs the Eurozone, certainly that's the message painted by the relatively stronger US ISM, IP, retail sales and core US PCE data vs material disappointments on Eurozone PMIs, IP and core CPI data”. For more information, read our latest forex news.