EUR long a counterproductive strategy at this stage - Nomura

By FXstreet.com | Updated 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."



You May Also Like

Related Forex Analysis
  1. The 1.2500 holds a EUR/USD ready to advance; watch for USDX weekly close below 87.6 ...
    Forex News

    The 1.2500 holds a EUR/USD ready to advance; watch for USDX weekly close below 87.6 ...

  2. Greenback dropping ahead of holidays – FXStreet
    Forex News

    Greenback dropping ahead of holidays – FXStreet

  3. EUR/USD back near 1.2500
    Forex News

    EUR/USD back near 1.2500

  4. Oil prices falling harms ECB’s quest - BBH
    Forex News

    Oil prices falling harms ECB’s quest - BBH

  5. EUR/USD Rebound Vulnerable to Slowing German, Euro-Zone CPI
    Forex News

    EUR/USD Rebound Vulnerable to Slowing German, Euro-Zone CPI

Trading Center