EURUSD
Non-Commercials increased their net short positions in the Euro last week selling a further 2.6k contracts to take the total position to -22k. The resumption of selling in the Euro largely reflects elevated investor uncertainty ahead of the first round of voting in the French elections, held yesterday.
Polling results ahead of the April 23rd vote showed a narrowing of Macron’s lead over Le Pen with Fillon and Melenchon both seeing increased support. Macron and Le Pen won the first round as expected with 23.8% of the vote and Le Pen coming in second with 21.3%. Le Pen and Macron will now face off in the second round, to be held on May 7th, with Macron widely expected to win, supporting EUR upside.
The ECB meet this week and markets will be keenly waiting to hear the bank’s latest outlook with money markets reflecting expectations of a hike in early 2018 following last night’s voting results in France.
Read more: https://www.orbex.com/blog/2017/04/fx-cot-update-eur-short-increased-ahead-of-french-elections/