Mr Market is seeing a gentle drift as some of the Asian session’s buyers ease off their longs and a few early Europeans take advantage of the higher euro led by EURJPY.
The euro is likely, barring unexpected surprise data, to dawdle around 1.3000 where, like yesterday, there is a decent sized option expiry.
Sterling on the other hand is far more likely to a sharper reaction; we have a clear bearish bias but we have a short market.
An obvious play to me would be in EURGBP.
