The story at the moment is mild US dollar buying across the board rather than anything euro-centric. But the result is the same as EUR/USD hits a session low at 1.3381. Some minor bids extend to 1.3380 but there isn’t much on the order board until the Aug 8 low of 1.3344. After that there are reports of demand in the 1.3335 range.
The slow lower in EUR/USD since the jump higher on Friday is consistent with a speculative market that’s happy to sell euros but the heavily one-sided positioning in the weekly CFTC data highlights the risks of a squeeze higher. If that’s going to happen, I think it will be this week because next week will be all about positioning ahead of Jackson Hole.
