Jul 5 EUR/USD drops 1.0449-1.0375 EBS shortly after Europe opens

The sell-off and broader USD demand had no obvious spark

Recently traders have slashed USD longs but it has remained strong

Less USD longs mean less restraint on a rally

Fewer longs mean a greater need to hedge should USD then rise

EUR/USD is on cusp multi-year low at 1.0340. Cable cusp 1.20 pivot

USD/JPY just shy of a multi-decade peak

EUR/USD last traded below 1.0340 in Jan 2003

A break below 1.0340 could force a major rethink and big demand for USD

FX traders should cover risk that stocks drop further nL1N2YM0C0