# FX Daily: Short squeeze helps the euro | articles | ING THINK

> On 27 February 2020 the euro rose as a short squeeze unwound positions, despite risk-off sentiment and a dollar that reversed some gains. Markets priced three 25 basis point Fed rate cuts over one year.

- Date: 2020-02-27 · published 2020-02-27T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/6190-fx-daily-short-squeeze-helps-the-euro-articles-ing-think
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Currency moves driven by positioning and Fed expectations affect dollar-denominated feed commodity prices and import costs for euro-zone buyers, though the squeeze is seen as short-lived.

## Read by commodity

- DXY: neutral
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2020-02-27 | 1 | +0.8% | 3.2 | Same-day report attributes the euro's rise to a short squeeze unwinding bearish positioning, combined with a softer dollar as markets priced about three Fed cuts over a year, which directly explains the 0.83% EUR/USD gain via currency positioning and rate-differential sentiment. |

## Sources

- think.ing.com: https://think.ing.com/articles/fx-daily-short-squeeze-helps-the-euro/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.