LONDON, Feb 10 Reuters Euro bulls might have to curb their enthusiasm after the rush to buy the single currency may have left it vulnerable in the short term, particularly given the uncertainty about many global central banks39; interest rate plans.

The euro hit its highest in 10 months against the dollar earlier this month, having gained 13 from late September39;s 20year low of 0.9528.

The prospect of a milder recession thanks to falling energy prices and plentiful supplies of natural gas, coupled with China finally emerging from three years of harsh COVID restrictions, have ignited investor appetite for European assets generally.

However, that enthusiasm has left the euro looking vulnerable, at least in the short term. The euro is set for a second straight week of declines and is currently around 1.075.

I39;m still positive on the euro, but if I look at our positioning data, it shows that current longs in euro, or what we call 39;current overheld positions39;, reached a record high, BNY Mellon EMEA strategist Geoffrey Yu said.

The bar is extremely high for additional longs, or to add fresh euro exposure at current levels.

Such extreme positioning in an asset is often seen as a negative, as it suggests there are comparatively few investors left to buy and plenty who could decide to sell.

Proprietary iFlow positioning data from the custodian bank showed its clients39; long euro positions against all other currencies i.e. bets the euro will rise are almost four…