Tiptoeing towards reluctant correction of sharp Fri action, but wary into bigger event risk
Still some room to give without cancelling skew
Still characterised by somewhat reluctant trade with limited commitment on show until seeing the ECB and then the US CPI data, with still a lean for upside dollar risk out of last week’s sharp price action.
EUR/USD has seen a bit of arbitrage and catch up to other markets in terms of retracement on the move going into NY trade after the slow European morning. But even as far as back to the 1.16~ area break and short-term trend that wouldn’t be neutralising the overall skew for lower later.
US data sees the expected narrowing in the US trade deficit though with prior month revised narrower too