EURUSD opened in Europe Thursday around 1.3690, precisely where it was at the European close Tuesday. This is not surprising, as Wednesday’s trip up to 1.3870 was unsupported by the positioning and exposures we have been monitoring. The short-term market is extremely long the pair, there is very little obvious upside stress, and there’s some distance from the levels where medium- or longer-term stress is likely to be. Yet this morning brought another, even-less-explicable move higher.
UBS Investment Bank