Hello,

This morning in our Forex Trading Room we took a long on the EUR/USD. It appeared that the EUR/USD was getting some buying as we near the end of the month.
Squaring of positions is often the term used when money managers take profits as they window dress to show their clients their performance for the month. Not only do the Money Managers want to show a nice profit but they also want to get their commissions, for this reason we often see some moves at month end depending on what happened for that month.

This month the statistics show that there are a considerable amount of more shorts than their are longs on the EUR/USD. This tells us (as we discussed in the Forex Trading Room) that some of those money managers that were short may just be covering into this move into the 1.3200 area of the EUR/USD. The EUR/USD has enjoyed a considerable move down in the last few months of about 500 pips.

We will stay abreast on this pair as we are starting to see some movement pickup as September nears.

Both myself and FT are both looking forward to the September month.