EUR/USD: EUR buying is declining while USD speculation is on the rise (Rabobank)

Rabobank notes the results of the IMM report on current currency market positioning.

"According to the IMM report, speculative positions on the USD increased for the thirteenth week in a row, with strong US growth in Q2.

Overall support for the USD reflects the intensification of capital outflows from emerging markets and the FOMC's indication that rates are being raised four times in total this year.

Purchases of EUR declined following renewed guidance from the ECB that rates may not be raised until after summer 2019. Purchasing of the EUR currently represent only about one-fifth of the total size as of early May."