EUR/USD confined to rough 1.05-1.10 this year - 1-mth vol sinking towards 8

DAX reaching highest since Feb 2022 after 2023 banking turmoil

Conditions will support risk taking - in FX the focus is on EUR/USD

Traders have bet almost $20 billion that EUR/USD rises

EUR/USD bet is much larger than all other FX bets combined

Longs are providing drag - helping to suppress volatility

EUR/USD carry favours shorts - a gradual shift to shorts may evolve

New EUR/USD ranges within 1.07-1.12 may develop short/mid term

If EUR/USD remains quiet - other carry trades will attract nL1N36E0ET