Forex Flash: EUR/USD short covering phase just about complete - NAB
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EUR/USD
FXstreet.com (Barcelona) - "Latest IMM positioning data for the week ended December 18 shows a further build in short USD positions," says Ray Attrill, Global Co-Head of FX Strategy at the NAB, noting "the latest change is largely a reflection of further covering of short EUR exposure."
"To the extent that the IMM data is representative of EUR exposure among the broader speculative and investor community, we can now say that the short covering phase of the rally in the EURUSD rate (from the mid-July low of around 1.2050) is just about complete," Ray adds, expanding: "For EURUSD to rally from here, now requires that we move to an 'accumulation' phase, whereby investors of various hues are willing to run outright long EUR exposure," he concludes.
"To the extent that the IMM data is representative of EUR exposure among the broader speculative and investor community, we can now say that the short covering phase of the rally in the EURUSD rate (from the mid-July low of around 1.2050) is just about complete," Ray adds, expanding: "For EURUSD to rally from here, now requires that we move to an 'accumulation' phase, whereby investors of various hues are willing to run outright long EUR exposure," he concludes.
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