Research Team at Goldman Sachs, notes that according to the CFTC Commitment of Traders report of February 2, 2016, EUR net shorts are declining.
Key Quotes
“In this week’s CoT report, USD net long positioning declined by $5.4bn to $20.9bn. Much of this move came against the EUR. Despite the ECB signaling potential further easing at its January, the two reports since have shown that the market is not willing to re-engage in Euro downside.
After a smaller $1.4bn decline in EUR net shorts last week, EUR net short positioning dropped $5.4bn this week to $11.9bn. EUR net shorts are now close to where they stood ahead of the October ECB. This is the first report to reflect data following the BoJ’s introduction of negative interest rates last Friday.
This week, JPY net longs declined by $1.4bn to $3.9bn. Overall, this is the fifth consecutive week of net long JPY positioning. Prior to that, speculators had been net short since late 2012.”
(Market News Provided by FXstreet)