EUR/USD: Decline in short positions – ING

Petr Krpata, a chief EMEA FX and IR strategist at ING, points out that for EUR/USD pair, they have observed a reduction in speculative shorts.

Key Quotes

“It largely reflects the temporary softer USD dynamics rather than a material change in investors’ outlook for EUR (which in our view still remains fundamentally unattractive due to the insufficient ECB stimulus to improve eurozone growth and inflation outlooks). We continue to expect EUR/USD to return back below the 1.10 level this year.”