“Despite the very strong NFP report on Friday, this did not translate into USD buying either over the week in total or on Friday itself from hedge funds or real money clients. Indeed technicals do not yet signal a reason to broadly buy USD.
We remain medium-term bullish USD, and in the near-term still like USD/CAD higher
EUR was sold for the third consecutive week by hedge funds, and we note four weeks of EUR selling by real money clients following a period of EUR buying that has persisted since the end of last year. Strong and persistent corporate EUR selling has abated however.
We like EUR/USD lower in the medium term, but will need to see more priced in for Fed hikes this year to provide momentum”.
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