We are gonna be even more vulnerable to headline risk today than normal, I fear, given the dearth of economic data today from the US. We’ll be watching stocks and the wires for directional clues.
The market continues to buzz about a still-large net USD long position and equity short position held by macro hedge funds. The shallow downside in EUR/USD this weak would suggest that talk has some validity. We’ll learn a bit more late in the NY session when the Commitment of Traders report is released for the week.
Sellers are seen in the 1.3830/50 zone near-term in EUR/USD while buyers are seen on dips to 1.3790, then 1.3750.