EUR: Mixed signals - Nomura
The research team at Nomura explains that euro continued to grind higher this week and looking into investor positioning in the currency, they find mixed signals.
Key Quotes
“FX-focused asset managers and equity investors are very long euros, while FX-focused hedge funds and bond managers are very short euros. Superficially, the latter appear to be more important for turns in the euro, which should support a bullish euro view. One caveat would be that expectations of ECB tapering communication appear to be gathering around the upcoming ECB meeting on 8 June. This could pose a short-term downside risk to the euro, but it shouldn’t derail the medium outlook in our view.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
