A snippet on EUR/USD from Bank of America Merrill Lynch FX Strategy Research via eFX
Bank of America Merrill Lynch FX Strategy Research notes that its latest EUR proprietary flows points to an important change suggesting that EUR risks are balanced in the near-term but could turn negative soon.
"Real money buying has been the main driver of the EUR rally this summer. However, our latest proprietary flows suggest that this flow has now stopped and that at the same time hedge funds have started selling the EUR rally.
These flows would have been consistent with a weaker EUR if it was not for official sector accelerating EUR buying in the last four weeks," BofAML clarifies.
