Forex Flash: EUR shorts keep shrinking – Rabobank

FXstreet.com (Barcelona) - The single currency remains sidelined in the vicinity of 1.3070/80 on Monday, as markets alternate the risk-on and risk-off trade. Furthermore, catalysts remain absent and data or results in both European and US dockets are scarce.

According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “EUR shorts managed a reasonable recovery as Cypriot tensions eased further. Speculation of a potential ECB rate cut will likely remain a risk for the EUR in the weeks ahead”.

Regarding the greenback positioning, Foley argued it remains strong although traders slightly scaled back their longs last week. “Two weeks ago long positions had climbed to their highest level since the financial crisis began”, concluded the expert.

Apr 15, 2013

Forex: GBP/JPY falls below 149.00 level

The GBP/JPY has been in a bit of a slump Monday, despite a failed attempt at the upside stalled at 150.43 earlier today during European trading. Since then however, the cross has edged lower to settle at 148.84/87 in these moments, down -0.55% thus far.

Forex Flash: Slovenia in focus as bailout signals mount – Investec

There was renewed focus on the Eurozone periphery during the latter stages of last week as news flowed late in the London session that EU finance ministers had agreed to increase the maturities of emergency loans to Ireland and Portugal from the Euro area by seven years. However, according to the Investec Analyst Team, “The move should help to smooth the return of the two countries' to full market financing, although Portugal still looks vulnerable in this respect given the rejection by its constitutional court cast last week of various austerity measures.”