💶🔺Shorts Cover And Systematic Buying Behind EUR Rally: Cable FX Macro

**As seen in Online Tools > G10FX RS, get access now! cablefxm.co.uk

• Looking back at a year of price action, the EUR is now the fourth-best performer in the G10 as the EUFX complex leads gains in the group. EUR/USD is now recording gains of 4.0% on the week, it is set to record its best five-day period since March 2020.

• Alternative sources point to various factors driving the EUR rally. 1) CTAs have flipped to net long EUR 25% vs net short 25% last week. 2) Model buying and short covering. 3) Delta buying and liquidation of downside structures.

• Having this in mind is important as the rally may look impressive, but there is still room for upside given that positioning remains healthy. Sources noted upside structures target EUR/USD ranging from 1.08/1.12 over the short-term.