EUR long a counterproductive strategy at this stage - Nomura

FXStreet (Bali) - Nomura FX Strategists are adamant to place too much confidence on a EUR short squeeze, noting that such strategies have historically not paid off.

Key Quotes

"We are paying attention to elevated EUR shorts (and elevated long USD positions in general). But we are not pursuing any contrarian strategies. Such strategies have historically not paid off, and there are special reasons to believe that they would be particularly counterproductive at this stage."

"We are sticking with EUR shorts within our broader long USD baskets. In addition, we maintain downside EURUSD trades through options However, the move lower is most likely to be grinding in nature (consistent with how we have structured option views), and a mini-squeeze along the way certainly cannot be ruled out."