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Amid the ECB noise, should you be long EURUSD?

Pressure appears to be mounting on the ECB President, Mario Draghi after Eurozone CPI inflation came in lower than expected. It fell to 0.5% in May, compared with 0.7% in April and core CPI was down to 0.7%. The reaction in EURUSD was fairly muted, suggesting to some that the markets have largely discounted the European Central Bank's policy announcements. Saxo Bank's Head of FX Strategy, John Hardy, says this is a difficult time for traders ahead of Thursday's fairly crucial central bank meeting.

John says the markets have got quite short EURUSD as speculation mounts as to what might be revealed on Thursday. He says it's hard to go long on a tactical basis. but there are many tail-risks associated with the ECB and Mario Draghi could still surprise, not least by announcing less than people are expecting.

02:16 minutes
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