Funds Drop Bets for Stronger Euro as ECB Seen Cutting Before Fed
- Investors cut euro longs to lowest since November 2022: CFTC
- Net long euro positions tumble for fifth straight week
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Asset managers have slashed their bets on gains in the euro to the lowest in more than a year, as markets factor in the risk that the European Central Bank will move before the Federal Reserve in cutting interest rates this year.
Positioning data from the Commodity Futures Trading Commission for the week through Feb. 20 showed that institutional investors cut back their long positions in the single currency to the least since November 2022. These positions have been decreasing steadily over the past five weeks.