Jamie, Gerry and I have all more medium-term views on the market but we are constantly being asked for short-term views on how each session will evolve. This is a much more difficult proposition but I will give it a go for a while and see if I can add some value to the intraday traders out there.
EUR: The big stops in EUR/USD below 1.3700 were taken out but Sovereign and option-related buying have put in a solid base. EUR has made decent gains against the JPY, small gains against the CHF and has lost ground against the pound. Many of the USD shorts have been covered ahead of the G20 but sentiment towards both the EUR and the USD remains very negative.
Technical: The picture is mixed with a bullish medium-term trend looking like it might be running out of steam. The short-term trend is bearish but the failure to hold below 1.3700 could be an important key intraday.
Conclusion: Play 1.3735/1.3825 range for the Asian session with a moderate bullish bias.
