A Vulnerable Moment for the Euro



Christopher Vecchio, Currency Analyst at DailyFX, comments:



“The appearance of a more hawkish FOMC (thanks to Fed Chair Janet Yellen’s hint that the first rate hike could come around six months after QE3 ends) – has helped further recalibrate the needle for the EURUSD. Economic data out of the Euro-Zone has been starting to disappoint generally, with the Citi Economic Surprise Index falling to +6.9 by March 21, the monthly low.



“If the market’s fear of the ECB grows amid the recent flip in central bank narrative (ECB complaining about higher EUR rate, Fed more hawkish), with speculators now the most bullish the Euro since the week ended October 29, 2013 (CFTC’s COT data shows Euro longs increased by +45.6% to 52,991 contracts for the week ended March 18, 2014) the perfect mini-storm for Euro weakness over the coming days and weeks may be developing.”






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