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Daily Forex Fundamentals |
Written by Saxo Bank |
Feb 09 12 12:27 GMT
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Central Banks Front and Centre Today
I sit here, hand firmly grasping my third cup of coffee for the morning as I desperately battle to stay awake in the midst of absolutely nothing happening in the market.
Deadline, after misleading headline, after yet another deadline on Greece later and still no progress. Vols across the board are taking a belting and no surprise really.
So that leaves us with little by way of spot and or options trades. Having said that though, I am, as of this morning, the proud owner of a one month butterfly over the EURUSD as I firmly believe that through all the machinations we'll see in the next few weeks, we will likely return to this 1.3250 pivot level, give or take a few points.
Today is all about central banks continental and otherwise. First cab off the rank is the BoE with a widely priced in and expected additional £50bn of printing to be announced, revised from a previously expected £75bn. The Cable remains on the march higher however and after yesterday's fixings, this is more to do with EURGBP and GBPJPY (oddly enough) than outright Sterling strength.
Shortly thereafter we have Super Mario, who is expected to sit on his hands in advance of a potential cut next month. The rhetoric will be important, but then again what can he really tell us, that the Frenchman previously in charge has left him quite the mess?
Rounding out the event risk today is the weekly claims out of the US and after last week's rather anomalous NFP print, almost anything (better or worse) can be expected.
With regard levels for the majors, well, I don't have a clear read at the moment and quite frankly I don't think anyone else has either. The market remains surprisingly thin and this does not bear well for the remainder of the quarter with regard price action.
Good luck out there today folks, with the main task at hand being the resolve to stay awake. |
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