•The latest IMM data covers the week from 4 to 11 November. The already substantial net short GBP/USD position was extended further. Speculative investors’ net GBP/USD position now stands at its lowest level since mid-2002, reflecting a belief that GBP could drop even further against USD.
•The net short EUR/USD position remained broadly unchanged.
•Net short CHF, AUD and NZD positions were extended while the small net short CAD position was halved.
•Looking at the major currencies, speculative investors extended their overall net positions slightly, implying that the peak in volatility may lie behind for the time being.
•The net oil position turned substantially negative as oil prices struggled due to fears of a global recession. The net long gold position was reduced marginally and it seems as if gold has lost some of its safe-haven status in this crisis.
•On the bond market, speculative investors positioned for a steepening of the curve, as positions in 2Y were extended, while positions in 10Y turned net short.
