• Traders were betting on the euro rising until July 3

• They were short of euros when BOJ/Fed intervened on Jul 31

• EUR/USD has risen above levels where traders established shorts

• $10.3 billion short is largest bearish wager since 2020

• The larger the FX bet, the greater is influence on currencies

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EURUSD and betting


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