GBP/USD: 1.20 test inevitable? – SocGen
|The Pound moves lower after the meek attempt to turn the tide last Thursday and Friday into month-end. Economists at Société Générale analyze GBP/USD outlook.
CFTC longs collapse to 6.9% of OI last week from 17.6%
Cable faces a battle to stay above 1.20 in October unless US bond yields stage a dramatic U-turn.
Hedge funds slashed sterling long positions to 6.9% last week from 17.6% of OI before the BoE. The decline by almost 11ppt is the largest since November 2021 when GBP/USD dropped two big figures from 1.36 to 1.34.
EUR/GBP pegged back below 0.87, in reach of 200-DMA at 0.8710.
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