Forex Trading Video: EURUSD Drops and GBPUSD At-Risk On Monetary Policy Focus
• Markets wouldn't pick up the momentum for last week's strong risk aversion drive, but it isn't lost
• EURUSD gapped lower Monday as Draghi made a clear threat of stimulus due to the exchange rate
• GBPUSD traders ready for the release of UK and US inflation data to guide rate expectations
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
The strong risk aversion of the last two weeks was on a weak footing to start this new trading period. In its absence, we find rate speculation more than capable of taking its place. Responding to a very clear threat, the Euro dropped Monday against all of its major counterparts. Clearly unnerved by the currency's strength, ECB President Draghi upgraded his threat to forcibly drive the Euro down via monetary policy channels. Ahead, we will see whether the US Dollar and Pound will exploit the unfavorable position of their counterpart or join it with important inflation readings. The risk theme is still in play, but our attention must now be split with interest rate speculation. We look at both drivers and their trade implications in today's Trading Video.
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