Trading Video: Monetary Policy Speculation Heats EURUSD Early this Week

Talking Points:

• Though the ECB rate decision is due later in the week, speculation on the Euro picked up Monday

• A WSJ news headline generated friction when the Fed's Bullard said low yields wouldn't stop a hike

• With volatility already elevated, sensitivity to key event risk will be heightened

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Though the ECB rate decision is still days away and the Fed meeting is more than a week out, policy speculation is generating heavy seas in the FX market. Between the steady rise in capital market activity levels and an increase in the frequency of outlier events these past months, investors across asset classes are growing more sensitive to their exposure should sentiment suffer a more systemic collapse. Moving forward, the Euro, Dollar, risk theme and Chinese GDP are items to keep a close eye on. We discuss these tides' influence on the market in today's Trading Video.

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