There are a lot of EUR traders in the market who have been sitting patiently waiting for today’s ECB meeting to pass before deciding on their next play and, at least in my trader fraternity, the vast majority of traders seem to have a bearish bias.
I find this somewhat surprising given that most of the big banks are pointing to heavy pro-EUR flows but even today I read one piece from a big British bank which said that flows remain net EUR positive yet they see EUR/USD at 1.22 by the end of 2013. Something doesn’t seem to add up there.
Whatever happens, I think traders will start taking more aggressive positions starting from next week.