Comments from JP Morgan on the euro, overnight note (in brief):

  • headlines are certainly weighing on long positions
  • fast money were sellers of EURUSD
  • real money continue to buy
  • Nervousness may well continue as we head into next week's ECB meeting which will likely mean that EURUSD is now more of a two way trade short term
  • We have noted multiple times, that a pullback of 200 points or so in EURUSD has historically been a good place to add when in a trend and, while we have been running a more moderate long recently, we still believe that USD weakness will persist in the medium term, therefore the current pullback sees us looking to add