empty
 
 

2014.09.0110:07:00UTC+00Euro Faces Risk of Short Covering

True, Draghi has stepped up his dovish tone but it is wrong to expect too much from the ECB at this week's meeting.

The market remains heavily bearish on the EUR, with speculators short EUR positions staying near their highest in two years.
As such, the single currency could see a short covering rally if ECB announcements fall short of expectations.
Kit Juckes, Global Head of Currency Strategy at Societe Generale, explains:
"EUR non-commercial short on the CFTC are at their highest level since soon after Mr Draghi's 'whatever it takes' speech two years ago. Clearly, the market is in danger of disappointment if the ECB meeting on Thursday fails to deliver more than dovish rhetoric and promises of action."
After Thursday, the focus will turn to the Fed, and the dollar will see a next leg up higher if the non-farm payroll figure surprises on the upside. 

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback