Flash: EUR/USD setting up for a short term correction? - TDS

FXstreet.com (Barcelona) - In a quiet market on Monday, the accumulation of USD shorts was pared back modestly ahead of the NFP tomorrow, notes Shaun Osborne, Chief FX Strategist at TDS.

Key Quotes

"Although most think the Fed is sidelined for some months now, we still rather think the USD will be sensitive to the data releases and—considering how the market is positioned, i.e. short USD—the main risk for the markets this week comes in the form of a positive (ADP, regional surveys suggest an OK result is likely) NFP number."

"With the 1.37 area holding EUR/USD gains, an overbought market may be setting up for a short-term correction at least."