Euro shorts smoked......lightly

On Friday.

The story going around is that this is a short-squeeze, but the pop up in the two weeks prior squeezed out 70,000 short positions and only led to a small bounce in the euro. Assuming more than 20,000 short positions closed this week, the euro has barely gained ground despite the shorts running for cover. There's still plenty of powder for a big short covering rally, but they'll need to be chased out by heavy buying to push the euro up. Otherwise, if the shorts return, it's new lows for the euro.