FXstreet.com (Barcelona) - In terms of what makes the USD a good investment, Jean Foley, Senior Currency Strategist at Rabobank, said: "The low level of carry is an offset to its perceived safely. While it can be assumed that investors are forced into USD or JPY assets in times of heightened crisis for liquidity reasons, it is also likely that they would rather be earning a better return." This suggests that a reduction in the fear factor "will trigger a fall in USD longs which could potentially be aggressive," she addes. "The latest CFTC data imply a drop in USD speculator longs as at June 26, even though market sentiment wasn’t particularly optimism in the approach to the summit. In view of the better tone in markets since last Friday’s summit and the move associated higher in EUR/USD, it seems likely that this week’s CFTC data will report an even more substantial decline in USD longs." She concluded.
Forex Flash: A fall in USD longs could potentially be aggressive - Rabobank
Mon, Jul 02 2012, 10:15 GMT | FXstreet.com
EUR/USD May 20 at 07:24 GMT
1.2858/60 (0.13%)
H1.2861 L 1.2819
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