EUR and the likeliness of further declines – Rabobank

EM Strategist at Rabobank Piotr Matys believes the single currency is headed towards lower levels following the latest CFTC report for the week ended on July 19.

Key Quotes

“The EUR net short positions increased further from 87.7k to 99.9k in the week ending of July 19 according to the latest CFTC Commitment of Traders report”.

“While the market is not as short as was the case at the beginning of the year, the underlying trend is clear as the Brexit vote may have negative implications for the Eurozone”.

“The selling pressure on the euro will be also exerted by the monetary policy divergence between the ECB and the Fed”.