RIP those still short... I tried to warn you guys based on fundamentals...
Fundamentals and leading indicators show a contraction in US economy meaning the FED will look to cut rates. Institutional investors have been positioning themselves long EUR for a month already to reflect this expectation, and the FED are being more open to cuts because of dovish outlook.
May want to keep an eye on July data however, and see if there will be a correction when the actual rate cut/no cut happens month end.
All leads to a EURUSD buy, unless Europe takes another shit (which they will, but hopefully not in the next couple of months).
Fundamentals and leading indicators show a contraction in US economy meaning the FED will look to cut rates. Institutional investors have been positioning themselves long EUR for a month already to reflect this expectation, and the FED are being more open to cuts because of dovish outlook.
May want to keep an eye on July data however, and see if there will be a correction when the actual rate cut/no cut happens month end.
All leads to a EURUSD buy, unless Europe takes another shit (which they will, but hopefully not in the next couple of months).