The ECB disappointed a market full of hope on the bond buying front yesterday and risk trades look set to remain under pressure given the growing prospect that the EU summit does not deliver significant initiatives. After the first day of talks, it’s clear that treaty changes won’t include all 27 EU member states, with the UK opting out. With more negative headlines likely, EURUSD is best played from the short side. We would only change our view on a break of 1.3420-40 now.
