Following the initial kneejerk reaction lower in the EURUSD, much as expected, the market appears to have actually given a second thought to the ECB's trial balloon leak, which had zero details on risk-mutualization or burden-sharing, and most importantly about the size of the announcement, which at €50 billion per month is well below the €1 trillion annual run rate which was the high-side whisper number, and then the kneejerk reaction promptly reverse. What happened next is a deja vu from last week, when as the epic surge in EURUSD volume, both in spot and futures, showed that at least one, and likely more, macro hedge funds were just stopped out of EURUSD shorts, as the reveral pounded anyone short the European currency with less than an infinite balance sheet.
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At this rate, by the end of the week, there may be no FX trading macro hedge funds left, whiuch may be a good thing: at this point, perhaps it is best to just let the central banks trade with each other.
