Once again we have not seen much change in overnight trade although momentum does seem to be trying to swing to the USD bulls. EUR/USD may hold the key to unlocking some much needed volatility with a big battle going on around the 200-dma at 1.3635. A weekly close below there would definitely change the market outlook.

It’s risk-off Friday but as there has been no big build up in positioning this week (with the possible exception of EUR shorts?) we should not witness any big hurry to exit. The economic calendar is pretty bare during Asian trade so I’m very afraid that we will have another 10/15 pip session across the majors

:(