According to IMM net speculators’ positioning as at July 16, 2019, long USD positions were virtually unchanged in the week ending July 16 after rising in the previous period and remained well below the levels seen before the Fed turned decisively dovish in May, notes the research team at Rabobank.
“Given that a Fed cut later this month is likely to be followed by the ECB lowering its deposit rate in September, it is difficult to expect net EUR short positions to fall significantly lower from current levels after plunging in May and throughout June on the back of growing market conviction that Chairman Powell will pull the trigger.”
“Speculators increased their bearish bets against GBP to the highest level so far this year and almost matching the August 2018 high.”
“We may witness an increase in long JPY positions this week on the back of rising geopolitical tensions in the Persian Gulf.”
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.