Key Points:
Markets are net long EUR, but Real Money investors (e.g., pensions, insurers, asset managers) still have EUR allocations below the post-2012 median.
Structural Tailwinds for EUR:
European asset managers may begin raising hedge ratios on their US equity holdings—reversing a long-standing trend—which could translate into fresh EUR buying.
While EUR positioning has grown more crowded in recent weeks, Real Money investors remain underweight, creating scope for additional EUR strength—especially if equity allocation trends and FX hedging flows materialize. The EUR remains supported by broadening diversification away from US assets and the relative attractiveness of European markets.
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This article was written by Adam Button at www.forexlive.com. Read More Details
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