Eurozone CFTC EUR non-commercial net positions rose to €40.2K from €32.2K.
This shows an increase of €8.0K compared with the previous reading.
The increase in net long Euro positions to 40.2k contracts shows large speculators are growing more confident in the currency’s strength. This suggests a bullish bias is forming in the futures market. We see this as a signal to re-evaluate any short Euro positions.
This sentiment aligns with recent economic data, as the latest Eurozone inflation report for April 2026 came in slightly above expectations at 2.3%. The stronger-than-expected price pressures reduce the likelihood of an interest rate cut from the European Central Bank this summer. This creates a favorable environment for the Euro.
At the same time, recent US labor market data has shown signs of cooling, which is increasing speculation that the Federal Reserve may consider a rate cut before the end of the year. This policy divergence is strengthening the case for EUR/USD upside in the medium term. Derivative traders should consider positioning for further gains, potentially through buying call options on the Euro.
This growing conviction marks a notable change from the uncertainty we saw throughout much of 2025. Back then, persistent concerns over industrial output and energy security kept speculative interest muted. The current build-up in long positions suggests those previous headwinds are now fading.
Given this momentum, selling out-of-the-money puts could be a viable strategy to collect premium, reflecting a belief that downside risk is now limited. Traders should watch key technical resistance levels in the EUR/USD pair. A decisive break higher could trigger a fresh wave of buying from trend-following funds.
