JP Morgan Cautious on EUR/USD Amid Murky Market Environment

JP Morgan has downgraded its outlook for EUR/USD in the near-term. According to a recent report, the market appears to be getting long USD as the end of the month approaches. The bank notes that both SHFs and RM have been buying the currency over the past few weeks, with SHFs on a strong 5-streak since the Fed.

Despite this trend, JP Morgan remains sidelined on EUR/USD in the near-term due to a 'very murky outlook'. They add that the options market has been quite noisy, with an increasing number of traders betting on a decline in EUR/USD. This makes it difficult for them to take a position.

JPM acknowledges the conviction is still muted out there but feels like they are painting the other side of a frustrating range.