External demand for the euro plunged in April as investors from the monetary union purchased foreign securities. Data coming from the Commodity Futures Trading Commission shows that speculators increased their net short position in the euro by 4,861 contracts to 61,261 contracts.
The European Central Bank would welcome a continuation of current-account shifts that alleviates some of the upward pressure on the single currency.
European PMI prints slowed for the second month in a row - notably in France while US PMI continues to expand at a robust pace, contributing to make the euro a little soggier today.
Technically speaking, if 1.3625/30 area can’t hold the Euro, 1.3670 is the key resistance level (just few pips below the 200-day moving average and near recent highs). Bears must twiddle their thumbs until we get 1.3500 in play again.
Broadly speaking, I wouldn’t put too much faith in a directional bias in a week where not much is going to happen.
