Euro / U.S. Dollar

Today’s Notable Sentiment Shifts

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EUR – The euro dropped to a five-year low on Wednesday, rekindling speculation that the currency could reach parity versus the dollar for the first time in two decades, as fears of a Eurozone recession and energy supply concerns encouraged investors to pile on the bearish bets.

Indeed, commenting on EUR’s outlook, Citi simply concluded that “more downside is likely… speculative positioning is much cleaner than before, suggesting scope for bigger “short” accumulation.”

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