Bank of America Global Research discusses the EUR positioning and notes that the market is slightly long EUR suggesting that positioning won't be an obstacle for EUR/USD to rally towards 1.15 over the coming months.
"The market is slightly long EUR according to our estimates, but this position is far from stretched (Chart 3). The overall EUR position, against all G10 and EM currencies, moved from short in the first half of 2019 to neutral in the second half and to slightly long by the end of the year. Real money is particularly long EUR, but the hedge fund position is neutral, after being short since the ECB introduced QE in 2015," BofA notes.
"Compared with the rest of G10, the market is also long EUR, with the exception against NOK and GBP, but again this position is far from stretched," BofA adds.