EUR/USD at 1.3570 on Sentiment Shift

The euro tumbled in the wake of monetary easing from the European Central Bank (ECB) earlier this month and analysts say a sentiment shift spells further currency weakness.

Market positioning data released on Friday showed that net short positions in the euro/dollar – essentially a bet on the euro falling – have risen to their highest level since late May 2013.

“What is happening is that the euro is winning as the preferred funding currency and if that’s the case there’s nothing wrong with the market being short if it can get even shorter and there’s plenty of money to be invested around the world,” said Jesper Bargmann, head of trading, markets, Singapore at Nordea.

CNBC

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