• EUR/USD short squeeze lifts pair to centre range traded for last 4 years

• March surge from 1.0360 to 1.0950 forced out entire short position

• Traders short equivalent $8.8 billion now long equivalent $1.7 billion

• The interest rate divide favours USD - one year swap is 212 pips

• 2023-2024 were two of quietest ranges on record suiting short positions

• Lengthy consolidation may follow latest return to middle ground

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EURUSD

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)