CFCT Positioning Report: GBP net longs in multi-month lows

Pablo Piovano FXStreet

These are the main highlights of the CFCT Positioning Report for the week ended on September 15^th:

Speculators trimmed their gross longs in the British pound for the third consecutive week, taking the net longs to the lowest level since mid-April at around 2.3K contracts. The prospects of further easing by the BoE coupled with increasing uncertainty in the EU-UK trade talks appear to have weighed on sentiment in the last days.
Net shorts in the US dollar rose to levels last seen in early December 2017. That was before the FOMC gathering, therefore It will not be surprising to see investors re-positioning in the greenback following the event and in light of the renewed bias towards the risk aversion seen in past days.
Speaking about safe havens, net longs in JPY climbed to 2-week highs, while net longs in the Swiss franc retreated to levels last seen in late July.
Despite the upbeat tone at the ECB event, speculators dragged net longs in EUR to the lowest level since late July. Profit taking and the resumption of some risk-off mood are seen behind the correction.

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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