Following on from my trade idea yesterday, tensions in Europe continue to hold the EUR back, although it was modestly positive to see some buying occur in this cross, despite Mr Putin cutting some agriculture and food imports into Russia. NATO also gave a stark warning that Russia had around 20,000 combat troops on standby at the Ukraine border.
We also saw Italy fall back into a technical recession, its third in six years. So the fact EUR/GBP rallied seems testament to the fairly one-sided positioning I have made reference to this week.
At 21:45 we get the ECB meeting, although I would be paying far more attention to Mario Draghi’s press conference at 22:30. Given the low levels of inflation, it’s hard to believe Mr Draghi will be anything other than dovish.