Flash: EUR net shorts increased ahead of Bernanke – Rabobank

FXstreet.com (Edinburgh) -The shared currency is extending its intraday bounce off 1.3000 on Monday, attempting to regain 1.3080 as the greenback is losing grip. Last week’s speech by Chairman Bernanke was the unique factor behind the large build up in EUR shorts, although a sizeable part is expected to be removed in this week.

According to Jane Foley, Strategist at Rabobank, “Reassurances at the start of the month from ECB President Draghi that policy would remain accommodative left the EUR on the back foot at the start of last week”. The USD long positions increased as a hawkish tone was expected from the minutes. The expert added, “USD longs increased in this environment, although it seems likely this could be reversed in the next set of data”.