Day seven - potential EUR/GBP trade

Traders will be keeping a close eye on the German ZEW survey today and the weakness in the surveys should highlight the loss of confidence seen due to the geopolitical issues from the region. 

Source: Bloomberg

Following on from my potential trade idea yesterday, the situation in Ukraine remains fairly fluid with the European Commission releasing a statement that the EU had promised the Ukrainian president that it will assist in providing humanitarian support. On a more worrying note, NATO said that it sees a ‘high probability’ that Russia could intervene militarily in eastern Ukraine and that it sees no sign of withdrawal of Russian troops from close to the Ukraine border.

These comments have held the EUR back a touch. As a result of this uncertainty I feel potentially moving stops up to 0.7950 (my entry was 0.7960), just below the downtrend drawn from the March high on the hourly chart seem prudent.

In the UK we get BRC retail monitor, however the key event will be the BoE inflation report due tomorrow night.

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