Commentary on the euro from Societe Generale Cross Asset Strategy Research
Notes that the latest positioning data show another jump to a new multi-year high in long Euro positions.
"It's hard to argue against the proposition that the market is long, and very bullish of the Euro. A pause seems reasonable after the failure to break clearly through EUR/USD 1.21.
That said, yield differentials are moving the euro's way and the US data do nothing to support the idea of a more aggressive Fed or of a range-break in Treasuries," SocGen argues.