Not much change overnight from our closing levels yesterday. The EUR and USD remain the most vulnerable currencies with all of the other majors enjoying brief periods of sunshine. Tomorrow’s G20 is the next big risk event and whilst most commentators expect no major developments, a small risk still exists that a slanging match develops and the currency wars (whatever they are) recommence. Position-wise, the market seems to be quite neutral and I remain of the view that playing crosses like EUR/CHF and EUR/AUD from the short-side (although they have already made significant moves) is the most obvious trade this week.
Good luck today.
