EUR shorts increased, GBP shorts trimmed - Rabobank


According to the IMM net speculators’ positioning as at April 9, 2019, speculators increased their bearish bets on the euro further with short positions rising to the highest level since early December 2016 in early April, notes the research team at Rabobank.

Key Quotes

“While at this stage short EUR does look like a pain trade as EUR/USD has been trading relatively well so far in April, the bearish view on the single currency is still valid.”

“Essentially, the Eurozone continues to underperform the US economy by a mile and the interest rate differential is skewed firmly in favour of the dollar as reflected in an increase in USD net long positions to the highest level in four weeks. Looking further ahead, EUR/USD is likely to lean lower in the coming months with 1.10 as our 6-9 month target.”

“GBP net shorts have been trimmed further to the lowest level since June 2018.”

“With speculative positions almost neutral, market participants can keep their powder dry for next sharp move in GBP/USD. The pair is stuck between the upside trendline from the December low and the trendline resistance from the March high. In the coming days/week cable will approach an inflection point, i.e. it will break from this consolidation phase.”

“Fading market concerns about global slowdown led to a further rise in JPY net short positions. This coincided with a recent rebound in USD/JPY which has reached a crucial technical pivot: the resistance area formed by the Nov/Dec lows around 112.24 level and the March high at 112.14. This area must be cleared to improve the technical outlook for USD/JPY, which provides clues for other asset classes as well, including emerging markets.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds on to weekly gains, aims to 1.2100

EUR/USD pressures this week high at 1.2079 after the EU services sector moved back into expansion territory according to Markit, the first time since August.

EUR/USD News

GBP/USD extends decline towards the 1.3800 price zone

Upbeat UK data fell short of boosting the pound, hurt by Brexit jitters in Ireland. US macroeconomic figures making the difference in the dollar’s favor.

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD drops below $1,780 area as US T-bond yields rebound

Gold lost its traction after climbing toward $1,800 on Friday. 10-year US Treasury bond yield is up nearly 2%. Latest PMI data from US underlined strong price pressures.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures