EUR: Sentiment is shifting - AmpGFX

The research team at Amplifying Global FX Capital explains that after a frustrating period of consolidation following the first round of the French election, and whipsaw on the second election round, the EUR has decisively broken its recent range.

Key Quotes:

“A factor that may have delayed the EUR rise is positioning.  Despite the ECB’s negative rate and QE policy, speculative traders using the CME futures market have been reducing their short EUR positions this year, moving last week to the first net long position since 2014.”

“The shift to a net long EUR speculative position may be a headwind for the EUR, but it is consistent with shifting sentiment towards to EUR, supported by consistent Eurozone economy strength this year, signs that core inflation is improving and strength in the Eurozone equity market.”