Scotiabank suggest that "positioning....>

EURO-DOLLAR: Scotiabank suggest that "positioning and technical factors support

the outlook for additional EUR gains. While speculative accounts have been

running long EUR positions for some time, real money and institutional accounts

still appear to be short the EUR, possibly for funding long positions in other,

higher yielding markets; gains through the $1.15 area will put the squeeze on

those positions, however. Technical trends are positive and the EUR trend higher

seems well-entrenched on the charts; this should mean limited counter trend

corrections (perhaps no more than the low/mid $1.14s for now) and an ongoing

grind higher in the EUR. We think the EUR can test the $1.16 area fairly easily

($1.1595 is the 50% retracement of the 2018/2020 decline) but the strength of

the trend currently suggests the EUR rebound may extend to the low $1.18s

($1.1822 is the 61.8% Fibonacci retracement of the $1.25/1.06 decline) in the

next few weeks."