Spec’s cut excessive bullish EUR position by more than half
* Speculators slashed their previously excessively bullish EUR position by more than half. The change was the biggest since May 2011 and 4th biggest ever and came as EMU inflation surprised on the downside sparking (which turned out to be correct) expectations of a cut by the ECB. As USD was favored over of all currencies except MXN the net USD position swung to a net long after spec’s being short USD the past four weeks.
* The NOK speculative positioning proxy once again foresaw a sharp EUR/NOK rise. As we wrote in the report last week our speculative positioning proxy for NOK indicated a switch from short to (a small) long NOK positioning. This has now occurred seven times in 2013 and all those occasions have been followed by a rise in EUR/NOK.
Read the full report: FX Research
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