24 Jun 2015
EUR/USD faces downside pressure – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the pair grinding lower in the near to medium term.
Key Quotes
“Today’s minor gains aside, we think this leaves EURUSD looking set to test the lower end of the recent trading rate at the very least after the stall above 1.14”.
“Keep in mind that short EUR positioning is significantly lighter now than just as few weeks ago; investors have taken a lot of risk off the table in the past two weeks amid worries that the EUR squeeze might extend, according to the latest IMM data”.
“In the event that EURUSD keeps tracking lower—and especially if the market pressures supports in the 1.11 and 1.10 region—investors may end up having to chase the move down as positions are rebuilt”.
“Given that liquidity has been at as premium in recent weeks, it could get a little bumpy for those investors who want to be short EUR but don’t have the position on in (enough) size”.
Key Quotes
“Today’s minor gains aside, we think this leaves EURUSD looking set to test the lower end of the recent trading rate at the very least after the stall above 1.14”.
“Keep in mind that short EUR positioning is significantly lighter now than just as few weeks ago; investors have taken a lot of risk off the table in the past two weeks amid worries that the EUR squeeze might extend, according to the latest IMM data”.
“In the event that EURUSD keeps tracking lower—and especially if the market pressures supports in the 1.11 and 1.10 region—investors may end up having to chase the move down as positions are rebuilt”.
“Given that liquidity has been at as premium in recent weeks, it could get a little bumpy for those investors who want to be short EUR but don’t have the position on in (enough) size”.