EUR/USD v Interest Rate Differential (Update)

In June (here) and again last month (here), we noted a curious divergence in two series that have historically moved together-- the EUR/USD exchange rate and the interest rate differential between the respective 2-year OISs.  Though the spread has continued to widen some, it has stabilized over the last month or so and it has really been the plunge in the euro that has helped narrow the gap thus far: