FXStreet (Barcelona) – Sean Callow of Westpac notes that EUR/USD price action has not matched Greece news, and the positioning along with caution ahead of the Greece Referendum is limiting the downside for the pair.
Key Quotes
“EUR/USD lost as much as 2 cents Monday morning in Sydney but had recaptured all this lost ground by the NY morning, steadying around 1.1235. This is the latest example of EUR price action not matching news around Greece. Many factors are likely to be in play but one is of course the potential for inflows to the haven bond markets such as Germany, France and the Netherlands.”
“Positioning is also likely to be limiting EUR downside, with specs adding to shorts last week on the CME and now perhaps wary of adding to this stance ahead of Sunday’s referendum. Month-end and quarter-end add to the difficulty of trading EUR at the moment, with liquidity likely to be thinned by those opting to stand aside.”
(Market News Provided by FXstreet)