. Forex Flash: EUR shorts establishing themselves – RBS

FXstreet.com (Barcelona) - According to FX Strategists Brian Kim and Brian Dangerfield at RBS, "A factor contributing to the advance in EURUSD above our fair value estimate may be positioning. CFTC data shows speculators on the IMM as of the week ended November 20 held a net short EUR position of about 91K contracts, and while that position is about half as large as the record net short position in June 2012, the market appeared to remain very short of EUR. Over the month of December, however, the net short EUR position has fallen dramatically and non-commercial positioning on the IMM in EUR contracts is now nearly flat, meaning that with the clear out in speculative shorts appearing complete, there is room for fresh EUR shorts to be established."