For all the rumours, announcements, downgrades etc, EUR/USD is exactly where it opened yesterday morning. The 1.3350/1.3550 range trade remains in place and the next surge in momentum will come from a clear break either side.
The early Asian market will look for statements out of Europe to add some volatility but I’d expect quiet trading until the RBA rate decision in just over 5 hours time. The market is expecting a 25 bps rate cut but it really is a line ball decision. Personally I don’t see any good reason for Glenn Stevens to waste bullets when it isn’t absolutely essential, so I expect them to wait until February.
Good luck today.
