In the European market, the euro tried to rally a bit during the trading session. Today, third-quarter euro area GDP was released, with the flash estimate coming in at 0.4% quarter-on-quarter, down from 0.6% during the previous quarter. That being said, it’s also worth noting that the ECB held its deposit rate at 2.5% yesterday. That was not a huge surprise; it was expected.

Its statement did warn that higher energy prices posed upward inflation risk and downward growth risk—not a combination we want. So, with that being the case, this is a market that I think we should continue to fade rallies. We’ve already seen that today. If we can break below 1.11, I’ll be aiming for 1.10. Full disclosure: I’m already short of this market and have no interest in buying it.