EUR/USD: 1.3150/1.3300 range still in control

The market tried the lower end of this range on Friday when heavy EUR/JPY profit taking emerged only for Sovereign buyers to emerge below 1.3175. I’d expect more of the same for today, although a lot will depend on what emanates from Washington. I would try to avoid buying or selling breaks in these markets, rather waiting for a break to occur and then trading retracements.

A ‘no deal’ decision from the US would likely lead to some heavy EUR/JPY selling but conversely will also lead to heavy EUR demand particularly from fixed income players.

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