The Euro advanced 0.49% against the US Dollar, finishing at 1.1332 in New York. Broad-based Greenback weakness enabled the shared currency to rally. While an upbeat UK budget supported the British Pound, still no Brexit deal was forthcoming. Yesterday saw some optimism on Brexit which saw the promise of a compromise deal on a food supply issue. Germany’s Angela Merkel said that we should prepare for the possibility of not reaching a Brexit deal with the UK.
We reported yesterday that net Euro long bets in the latest COT report (week ended June 30) were slashed by -EUR 19,493 contracts to a net long of +EUR 98,955 contracts. Total net speculative long Euro bets were still at 84% relative to the year’s maximum number of longs.
EUR/USD has immediate resistance at 1.1350 followed by 1.1380. Immediate support can be found at 1.1310 followed by 1.1270. Look for consolidation within a likely range today of 1.1270-1.1370. Prefer to sell rallies to 1.1370.