- EUR net long positions hit two-year highs, but fail to bring in additional bids.
- EUR/USD is sidelined at press time amid losses in the US stock futures.
The buying interest in the single currency remains weak, keeping EUR/USD sidelined near 1.0935 while heading into the European session.
Reports of bullish market positioning have so far failed to draw fresh bids for the common currency. The net speculative long positions in Euro rose to 79,624 contracts in the week ended April 7 to hit the highest in nearly two years, the US CFTC’s commitment of traders report released on Friday showed. It’s worth noting that speculators were bearish just five weeks ago.
Rejected at 1.0950
The pair faced rejection near Friday’s high of 1.0950 during the Asian session, possibly due to the risk-off tone in the S&P 500 futures and the resulting demand for the US dollar.
The stock futures fell by over 2% in early Asia as oil prices dropped despite the decision by the OPEC+, a group of 24 nations led by Saudi Arabia and Russia, to cut the oil output by 9.7 million barrels per day. Analysts at Goldman Sachs downplayed the deal, calling it insufficient to counter the demand destruction caused by the coronavirus pandemic.
Bearish pressures around the stock futures were likely bolstered by reports of a surge in the number of coronavirus cases in China.
European markets are closed on Monday
The European data docket is empty with markets closed on account of Easter Monday. As a result, trading volumes will likely be thin and erratic moves may be seen in the foreign exchange markets.
The EUR/USD pair will likely continue tracking the action in the oil markets and the S&P 50 futures. While oil prices are now reporting 3% gains, the S&P 500 futures are still trading in the red. The single currency may catch a bid if the stock futures reverse higher, tracking the uptick in oil.