EUR/USD positions flatten up, still negative – ING

Sandeep Kanihama FXStreet Contributor

Francesco Pesole, FX strategist at ING, notes that according to the CFTC data referring to the period 9-16 October, speculative positions on the common currency remained flat at -15% (of open interest) despite EUR/USD being broadly supported throughout the same period.

Key Quotes

“We suspect this mirrors the market’s reluctance to enter EUR longs given a medium-term outlook that remains gloomy for eurozone sentiment.”

“In particular, latest data-flows (CPI, Industrial production, ZEW) still failed to signal any relief in the battered euro-area economy and we struggle to see ECB efforts on the monetary side to be sufficient to trigger a change of direction.”

“When adding the non-negligible risk of more US tariffs on eurozone exports, the low market appetite for the euro seems even more warranted. In line with this view, we expect EUR/USD to head back below 1.10 by the end of the year.”

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.

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