EUR long a counterproductive strategy at this stage - Nomura

By FXstreet.com | August 12, 2014 AAA

FXStreet (Bali) - Nomura FX Strategists are adamant to place too much confidence on a EUR short squeeze, noting that such strategies have historically not paid off.



Key Quotes



"We are paying attention to elevated EUR shorts (and elevated long USD positions in general). But we are not pursuing any contrarian strategies. Such strategies have historically not paid off, and there are special reasons to believe that they would be particularly counterproductive at this stage."



"We are sticking with EUR shorts within our broader long USD baskets. In addition, we maintain downside EURUSD trades through options However, the move lower is most likely to be grinding in nature (consistent with how we have structured option views), and a mini-squeeze along the way certainly cannot be ruled out."



comments powered by Disqus
Related Forex Analysis
  1. USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation
    Forex News

    USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation

  2. USD/JPY is dancing around 107.00
    Forex News

    USD/JPY is dancing around 107.00

  3. USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision
    Forex News

    USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision

  4. NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades
    Forex News

    NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades

  5. EUR/USD sidelined above 1.2700
    Forex News

    EUR/USD sidelined above 1.2700

Trading Center