EUR crosses/EUR/USD/FXWW News

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 that’s likely to remain the case;
  • Reserve manager currency allocations seem to be signalling a shift away from the EUR.

The latter two can lead to very heavy flows so selling rallies is still the obvious play in my view.

The crosses will be less volatile than EUR/USD, with EUR/CAD and EUR/NZD offering some decent longer-term trade set-ups.

  1. Question:

    Sean could the Swiss be buying $ and selling (dumping) EUR against everything they can? And then buying the AUD against the CHF to keep it down?

    What are they doing with billions of decreasing EUR’s if not?

  2. Hi Sean,
    Best wishes for 2015!
    Small question: where to get the interbank research that you read? How much does it cost?

    Thank you!

Leave a Reply

Your email address will not be published. Required fields are marked *