Forex Flash: EUR longs continued to shrink – Rabobank

The bloc currency is meandering around 1.3200 on Monday, as rumours from the exit polls in the Italian elections grabbed all the attention so far. The apparent good performances of Beppe Grillo and Silvio Berlusconi would be weighting on sentiment and keeping EUR demand subdued.

After the last CFTC COT report, Jane Foley – Chief Currency Strategist at Rabobank – affirmed that investors continued to scale back their positions of EUR longs in response to the increased risk aversion. “USD longs rebounded sharply back to their strongest position since last September. Last week’s FOMC minutes, which encouraged talk that the Fed could exit QE sooner than had been expected, could further support USD longs”, remarked Foley.