US Dollar (USD) net long positions have decreased. Euro (EUR) net long positions have surged, driven by a decrease in short positions. Pound Sterling (GBP) net long positions have jumped higher again after the recent shake out, and Japanese Yen (JPY) net long positions have increased, Rabobank’s FX strategists Jane Foley and Molly Schwartz note.
FX Market Positioning as at August 20
“USD net long positions have decreased, driven by an increase in short positions. Better US economic data have provided reassurance that the market was priced for too much easing from the Fed during its mini panic earlier this month. That said, Powell struck a slightly more dovish tone than expected at the Jackson Hole event, driving USD lower on Friday. EUR net long positions have surged, driven by a decrease in short positions. Eurozone July CPI inflation registered in line with expectations at 0.0% m/m and 2.6% y/y. We have seen a consistent appreciation of EUR against USD, with EUR/USD up from an August low of 1.0778 to 1.1189 at the time of writing.”
“GBP net long positions have jumped higher again after the recent shake out. GBP is the best performing G10 currency against USD. At the time of writing, the market is pricing in a 26.7% likelihood of a 25bp cut at the BoE’s September meeting. JPY net long positions have increased, driven by an increase in long positions. JPY net short positions are at their lowest level since March 2021. This continues the improving trend that has been in place since early July. The Bank of Japan released its decision to raise the target rate 15bp to 0.25% on July 31. Since then, Japanese economic data have mostly improved, and JPY long positions are at their highest level since 2016.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from fresh multi-year highs, holds above 1.1000
EUR/USD neared 1.1150 in the European session on Thursday, shedding roughly 100 pips afterwards. The Euro holds on to solid gains amid broad US Dollar weakness, after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.
GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD is extending its upbeat momentum toward 1.3200 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus.
Gold retreats below $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, and pierces the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.