Day five: potential EUR/GBP trade

EUR/GBP is modestly higher than this time yesterday, however price action is far from convincing and my short AUD/USD is looking the more compelling idea after yesterday’s weak Aussie jobs report.

Source: Bloomberg

Following on from my potential trade idea yesterday, the ECB meeting showed a lack of urgency from the central bank, with Mario Draghi continuing to view the recovery as 'moderate and uneven'. The ECB president also highlighted that risks were to the downside, with tensions in the Ukraine a growing concern.

Again the ECB detailed that it may buy private assets later in the year and expressed some pleasure in the falls of late in the single currency. Still, we didn’t really learn anything new and thus the market 'bought the fact'.

In European trade we get French and UK industrial production numbers, however traders will focus more closely to home today with the RBA's Statement on Monetary Policy (SoMP). The market is keen to see if the RBA use this opportunity to alter its current economic forecasts, which in theory could shape their view on monetary policy.

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