27 Jul 2015
EUR net shorts continue to build up – Rabobank
FXStreet (Edinburgh) - Senior FX Strategist Jane Foley at Rabobank, noted the speculative EUR shorts have been increasing in recent weeks.
Key Quotes
“Following the compromise agreement between Greece and its creditors earlier in the month, net shorts in the EUR continued to rise last week as speculators opted for higher yielding non-Eurozone assets”.
“That said, the subsequent pressure on Chinese stocks and EM currencies could lead to a reversal in some of these positions this week”.
“Net USD longs edged higher in response to this month’s hawkish commentary from Fed Chair Yellen, though the market remains reluctant to accept that the Fed will rush into a rate hike”.
Key Quotes
“Following the compromise agreement between Greece and its creditors earlier in the month, net shorts in the EUR continued to rise last week as speculators opted for higher yielding non-Eurozone assets”.
“That said, the subsequent pressure on Chinese stocks and EM currencies could lead to a reversal in some of these positions this week”.
“Net USD longs edged higher in response to this month’s hawkish commentary from Fed Chair Yellen, though the market remains reluctant to accept that the Fed will rush into a rate hike”.