FXStreet (Edinburgh) - According to Anders Fischer, Analyst at Danske Bank, the divergence in policies between the ECB on one side and the US and the UK on the other would weigh on the crosses.
“The latest IMM positioning data released Friday showed that investors almost doubled their short speculative EUR positions from -6.1% to 11.8% of open interest in the week ending 3 June”.
“In the same week, investors also approximately doubled their speculative long USD positions underscoring that investors entered the ECB meeting last week with high expectations of ECB action”.
“The relatively stretched EUR and USD positioning is one of reasons why EUR/USD has not suffered following the ECB meeting”.
“However, fundamentally, we believe that divergent monetary policy between the euro-zone on the one side and the US and the UK on the other will support the case for a lower EUR/USD and EUR/GBP in the medium to longer term”.