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Saturday, May 18, 2024

EUR/USD Sentiment Falls, a Higher Chance of Price Decreasing

Key Takeaways:

  • Sentiment is shifting toward bearish on the Euro.
  • Market participants are also growing more bearish on the Euro and are looking to capitalize on potential weaknesses in the currency.

Euro Sentiment Towards Downside

According to the COT report, asset managers and institutional traders, who collectively hold 60.4% of the total open interest in EUR futures, have reduced their long positions by 7,700 contracts since April 9, 2024. This reduction in long positions suggests that these market participants are becoming less bullish on the Euro’s prospects.

EUR Asset Managers Sentiment

Conversely, the same group of traders has increased their short positions by 13,267 contracts over the same period. This shift towards short positions indicates that asset managers and institutional traders are growing more bearish on the Euro and are positioning themselves to potentially profit from a decline in the currency’s value.

With a combined open interest of 397,902 long contracts and 149,568 short contracts, their trading decisions can have a considerable impact on the Euro’s price movements.

Interestingly, while asset managers and institutional traders have been reducing their long positions, leveraged funds have been increasing their short positions. The COT data shows that leveraged funds have increased their short positions by 17,780 contracts since April 9, 2024. This suggests that these market participants are also growing more bearish on the Euro and are looking to capitalize on potential weaknesses in the currency.

EUR Leveraged Funds Sentiment

The shift in sentiment among asset managers and institutional traders, as well as the increased short positions from leveraged funds, could be due to different reasons, such as economic uncertainties, geopolitical tensions, or changes in monetary policy expectations within the Eurozone.

Lazarus
Lazarushttps://ljlnews.com
Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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