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13 Apr 2015
Positioning and US data weighing on EUR – Danske Bank
FXStreet (Edinburgh) - In the view of Sverre Holbek, Senior Analyst at Danske Bank, the downside in the single currency could prevail in light of the positioning report and good results expected in the US economy.
Key Quotes
“This week markets will continue to focus on US data; specifically we expect a strong retail sales figure tomorrow to fuel demand for the greenback”.
“Meanwhile we still expect excess liquidity in the euro zone to weigh on the EUR as the search for yield includes foreign assets and as foreign investors maintain high hedge ratios on EUR-denominated exposure”.
“CFTC IMM positioning data released Friday show that speculative bearish bets in the single currency remain close to a historical high”.
Key Quotes
“This week markets will continue to focus on US data; specifically we expect a strong retail sales figure tomorrow to fuel demand for the greenback”.
“Meanwhile we still expect excess liquidity in the euro zone to weigh on the EUR as the search for yield includes foreign assets and as foreign investors maintain high hedge ratios on EUR-denominated exposure”.
“CFTC IMM positioning data released Friday show that speculative bearish bets in the single currency remain close to a historical high”.