CFTC: USD loses ground across the board – Rabobank
|The US Dollar (USD) net long positions slipped further for the third week in a row. The Euro (EUR) positions popped back into positive ground, driven by a drop in short positions. The Pound Sterling (GBP) net long positions have jumped for a second week, Rabobank’s FX strategists Jane Foley and Molly Schwartz note.
GBP gains ground for a second week
“USD net long positions slipped further for the third week in a row, as both long and short positions dropped. The softening in US economic data has continued, resulting in a bolstered outlook for a Fed rate cut in September. That said, the assassination attempt on former President Trump has bolstered the USD in the spot market as betting odds point to an increased chance of him taking the White House.”
“EUR positions popped back into positive ground, driven by a drop in short positions. The market was relieved that the far-right was pushed into third place in the second round of the French parliamentary election. That said, plenty of uncertainty remains regarding the outlook for France’s budget. The ECB is widely expected to leave rates on hold this week.”
“GBP net long positions have jumped for a second week, driven by an increase in long positions. GBP overtook the USD as the best performing G7 currency in the year to date helped by hopes of post-UK-election political stability and some question marks over a BoE rate cut in August. UK CPI inflation data are in view in the week ahead.”
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