Back
17 Jun 2013
Flash: EUR shorts continued to shrink – Rabobank
FXstreet.com (Edinburgh) - The EUR/USD is grinding lower at the beginning of the week, hovering around 1.3330 and extending the bearish momentum sparked at the end of last week. However, consolidation and lack of volatility look set to prevail ahead of the FOMC gathering due on Wednesday.
“Speculators significantly lightened their EUR shorts again last week, meaning that in just two weeks net shorts dropped by more than 77,000. The move gives credence to the view that the EUR is benefitting from the unwinding of diversification trades”, assessed Christian Lawrence, Strategist at Rabobank.
Regarding the greenback, the expert added that investors continued to gradually scale back their net long positions in the last week.
“Speculators significantly lightened their EUR shorts again last week, meaning that in just two weeks net shorts dropped by more than 77,000. The move gives credence to the view that the EUR is benefitting from the unwinding of diversification trades”, assessed Christian Lawrence, Strategist at Rabobank.
Regarding the greenback, the expert added that investors continued to gradually scale back their net long positions in the last week.