GS: EUR

From the FXWW Chatroom – The start to the week has seen a bit of profit taking and many participants now wondering if we are close to fair value as we drift towards 1.05. I’m a bit surprised in how much reduction in EURUSD shorts I am hearing about despite high conviction that Draghi will deliver. There are also a lot of questions around what a two tier rate cut really means and what the blended effect will be. This is all leading me to believe there is a big chance this could be one of the messiest ECB days in recent memory. Ultimately I still think Draghi delivers and my bias for is to remain short and sell into any bounce with 1.0650/60 the first good sell point. ISM this afternoon should be the highlight in a day that most likely will be quiet ahead of the bigger events later in the week. 

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