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Following on from my potential trade idea yesterday, the German ZEW confidence print was expected to be weak, but the 18.5 point fall in the ‘expectations’ survey pulled the index to the lowest level since December 2012. This also saw the German DAX index underperform the region.
On the geo-political front the new development is that the Ukrainians will not allow entry to 280 Russian trucks which are expected to be carrying humanitarian aid, with fears the trucks could be carrying weapons to the separatists.
My trade idea was premised on the fact the positioning had become very one-sided, however the threat of geo-politics should keep the EUR from rallying too much from here.
On a more positive note, my potential short AUD/USD idea seems to be working out nicely, although with Australia’s Q2 wages out at 11:30 AEST and the raft of Chinese data.