Now that we are trading back at the lows in the range in EURGBP , the game is roughly level going into ECB today and we can begin to look for positions once more. In a situation which is very similar to the previous flow that we played from the in December.
Continuing to build EUR exposure at 0.885x and looking for ECB & BOE to start diverging in expectations from today onwards. BOE are going to play the whole -ve rate endgame with wonderful precision and genuine artistry. Pound devaluation is the way to go in my opinion.
A quick recap of ECB expectations for today:
> Global is starting to show signs of creeping higher (see the explanation) so expecting Lagarde to be slightly EUR on , neutral on growth, no changes in rates and the usual 'watching the currency closely'.
Looking to make use of the 0.885x lows for a move back towards our 0.900x and 0.922x highs.
Thanks as usual for keeping the feedback coming 👍 or 👎