We have lots in the pipeline this week, even the potential for the Fed to launch the good ship QE3, but until Super Mario takes the stage on Thursday, the market will trade with one hand tied behind its back.
Only after the ECB will state of play become clear. Will the market be be dealing with an incremental move from the central bank and some fiddling around the edges by the Eurogroup or will we be dealing with a coordinated monetary/fiscal plan of action that removes the risk premia that Spain and Italy are being forced to pay in the bond markets.
Look for markets to be thinner and more volatile in the days leading up to Thursday at 12:30 GMT, particularly think around the Fed announcement on Wednesday.
At the moment, offers are in place around 1.2265/70 in EUR/USD while bids remain on dips to 1.2220/25.
More sellers are layered up from 1..280 to 1.2300 near-term.
