EUR/USD — Long BiasEuro vs. US DollarFX:EURUSDLeox_MarketsI maintain a short-term bullish EUR/USD narrative. The USD remains under pressure as concerns around U.S. debt, Treasury bond-market intervention and fiscal credibility continue to weigh on the dollar. At the same time, Eurozone fundamentals have improved. August Composite PMI rose to 52.1, while Manufacturing PMI reached a 54-month high of 52.8, supported by stronger new orders and exports. Eurozone consumer confidence also improved, while persistent inflation keeps expectations of further ECB tightening alive. COT positioning remains net short EUR at approximately -59.1K contracts, so positioning is still bearish on an absolute basis. However, net shorts improved slightly from -60.0K, indicating modest short covering. This week's main risks are U.S. PCE inflation and Fed Chair Warsh's Jackson Hole speech. Softer U.S. inflation or a less-hawkish Fed message would strengthen the bullish setup.