Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Mar 27 - 06:55 AM

EUR/USD - COMMENT-EUR/USD Going Nowhere Fast So It Pays To Be Short

By Jeremy Boulton  —  Mar 27 - 04:40 AM

EUR/USD is going nowhere fast so it pays to be short with the guarantee of some returns due to interest rates while there is less risk of losses due to unfavourable movement.

Although the gap between U.S. interest and euro zone interest rates that favours the dollar is not that large at around 1.5 percent, it is expected to hold throughout 2024.

Considering EUR/USD has effectively sat still for over a year, investors may see an opportunity to sit short and reap some reward.
Should they sell strength, there is a good chance that they make additional gains due to favourable FX movement.

EUR/USD's range in 2023 was one of the smallest on record, and so far 2024 is shaping up to be quieter.
Option vols are sinking suggesting less chance of the bigger moves that specs betting on euro rising hope to see, and the growing potential that they sell will weigh on EUR/USD.

This year the pair has traded a 1.1047-1.0695 range and rather unsurprisingly given the quiet spell, it's sitting near the centre of these extremes.
Traders may increasingly focus on trade remaining within 1.06-1.11, or a range close to that, and interest rates and current positioning are cause to expect a slow grind lower this year.

For more click on FXBUZ

Refinitiv IFR Research/Market Commentary


  • eFXplus
  • End-user license agreement (EULA)


  • About
  • Contact Us


  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2024 eFXdata · All Rights Reserved