Time for me to do an update on the 2 month EURUSD call option that I did back on 24 April 2013. My cost was 185bps and the breakeven was 1.3175, the current spot of 1.2895, appears to be still very far from my levels.
There is a real possibility that I may have made a wrong call on this one and then again, I may not, it’s really hard to say right now.
The tide which was very bullish USD may be turning this week and we might see the return of the bulls for EUR, GBP and AUD.
Mid week is going to be critical, Wednesday is the release of the BOE’s policy minutes, and also Bernanke speak on that day.
Thursday is crucial as fresh numbers on the flash PMIs will be out.
Friday is when Draghi speaks.
My hunch tells me that we will see alot of action and volatility in the latter part of the week, favoring a weaking dollar.
The Panthenon Investment Group 