Forex Flash: EUR shorts increased, contrasting with USD longs – Rabobank

The euro remains locked within a narrow range in Monday, hovering over the key level of 1.3000 after second-tier euro docket failed to break the consolidation pattern. This situation is likely to persist ahead in the session, as there are no scheduled events/results in the US.

According to the last CFTC COT report, Currency Strategist Jane Foley at Rabobank argued, “The EUR dropped decidedly out of favour last week. Shorts returned to levels not seen since December ahead of last week’s ECB policy meeting and on the back of continued uncertainty connected with the inconclusive Italian election. By contrast USD longs continued to creep higher and are holding at their best levels since September”. The expert added that last Friday’s NFP results could add to USD longs in this week’s report.