Category in EUR crosses

EUR flows: Speculators short but big players still selling

Just catching up on interbank research after a 2 week break and the following factors are being consistently reported: Prime Brokers are reporting heavy speculative short positions amongst professional players, especially through the options market; Overall short positioning in the spot market is at significant levels; Net Fixed Income flows have been very EUR-negative and

As volatility increases pre-FOMC, look for buy-dip opportunities in EUR crosses

It’s too much of a gamble in my view to trade USD positions around FOMC time so I prefer to trade the crosses. Anytime the USD sees some major volatility, we will tend to see the crosses move hard and fast and some will obviously outpace others. This will give rise to some excellent opportunities,