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Nov 19 - 05:55 AM

EUR/USD - COMMENT-EUR/USD Longs Are A Big Gamble And A Safe Bet

By Jeremy Boulton  —  Nov 19 - 03:40 AM

Traders have bet far more on EUR/USD rising than any other FX bet this year.
That's because it's a relatively safe bet.

Long are not just safe because the euro is considered to be a safer asset but also because the risk is minimal compared with other FX bets.

EUR/USD is more liquid than other FX pairs and changes to positions can be made instantaneously for the tiniest of spreads.
That's why it so attractive for traders seeking to make money during a year of great uncertainty.

With no end to the coronavirus crisis soon, there's a high probability the bets will dominate trading next year, too.

Longs unwound this year will probably be re-established and while ECB stimulus expected in December may be expected to weigh on EUR/USD, it may instead boost risk appetite and the will to gamble, supporting EUR/USD demand.

EUR/USD strength may give ECB a bigger headache next year, and by then longs may have far exceeded this year's record bet.




For more click on FXBUZ


EURUSD and longs Click here

Source:
Refinitiv IFR Research/Market Commentary

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