If EUR/USD rallies this year, it will do so at a time that's notorious for diminishing liquidity, and that could lead to a rapid rise.
EUR/USD is well placed to rally.
The number of bets on a rise have been reduced, falling to levels similar to July's, when the pair was moving up quickly. nL1N2I20L9
There is also a clear risk-on bias throughout financial markets.
The scramble to buy other risky assets that favours a resumption of the EUR/USD rally.
In comparison to other bets, EUR/USD is low risk and that will encourage buyers, who could see a 5% return on their money in the short term.
Should EUR/USD close over 1.2103 this month it will suggest that 2018's high at 1.2556 could be revisited.
The chance of a bullish close this month has been heightened by expectations for month-end rebalancing, expected to result in larger-than-average dollar selling nL1N2IA0ZI
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