Credit Agricole on the euro
Credit Agricole CIB Research flags a scope for further EUR/USD correction from the positioning front.
"According to our FX positioning gauge, the EUR was sold with real money and speculative-oriented investors such as hedge funds driving most of the negative price action. With long positioning still elevated, further corrective downside risk cannot be excluded, especially against the USD and if there is scope for further rising US market rates," CACIB notes.
"This makes sense, especially considering that overall USD positioning has stayed broadly flat, which implies there is room for rising buying interest to benefit the currency should for instance further rising market rates make a case for it," CACIB adds
