DB on the euro, saying they are not becoming bulls on USD nor looking for a larger reversal in EUR/ISD.

  • "We have been vocal EURUSD bulls since 1.10 and argued for an acceleration in dollar weakness as EURUSD reached 1.15 in July. But with EURUSD having (nearly just) reached our 1.20 target earlier this week we now favour taking profit and see a more balanced outlook as we approach September"
  • "EUR/USD around 1.20 is close to fair value as things stand"

DB add that if the move extends towards 1.23 it would make the range "extreme and suggest ultimate exhaustion"

DB cite, amongst others:

  • euro positioning has reached record highs
  • and thus positioning is a bigger concern now