Flash: EUR/USD Consolidated - TD Securities

FXstreet.com (London) - Toronto FX Research Team at TD Securities said that EURUSD has been progressively more consolidative over the past three trading days, and the bull-run that nearly reached 1.3400 seems to have run out of steam.

They explain that speculative shorts (as per the CFTC) have been pared almost entirely now which means the market may need a stronger fundamental driver to see significantly higher levels from here. The FOMC and EZ PMIs (Thurs) are the two main developments to watch, they said, which should break the narrowing wedge in the mid 1.3300 area. Fundamentally, they feel EUR continues to look rather rich at current levels.