Talking Points:

• The British Pound was struck by volatility - as expected - on the release of the BoE Quarterly report

• Ahead, interest rate expectations will find updates from US CPI and Euro-area GDP

• Always keeping an eye on risk trends, the VIX shows complacency is once again at extreme levels

Do you have a Dollar or Euro trade on? Keep track of today's top event risk and watch its impact on the market live with a DailyFX Analyst. See what events we are covering and sign up for email reminders.

Another dollar-backed major has threatened to reverse a long-standing trend. Can event risk ahead leverage high-profile EURUSD, GBPUSD and USDJPY corrections into lasting trends? The common denominator to such a move across these three is the ever-elusive deleveraging of the market's extravagant risk position. The skepticism and volatility of late pose a greater threat, but this is not a theme to hold our breathe for. In the meantime, rate expectations are proving a very effective driver now. This past session, the Pound tumbled after the BoE Quarterly report tempered expectations for the first hike. Ahead, we have two distinct sets of data that may also shape the Dollar and Euro policy bearings. We cover these themes and their trading potential in today's Trading Video.

Sign up for John’s email distribution list, here.