I’m short EUR/MXN in the second quarter, given the Euro’s resilience against EM currencies in the last 6 months, despite risk-on appetite bringing them back from March 2020 lows.
Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bearish contrarian trading bias.
The key question for EUR/USD traders looking at the second quarter of 2021 is whether the steep decline in the pair in the first quarter will reverse in Q2, and…