The latest Commitment of Traders Report, otherwise known as the CFTC Positioning Report, shows that the number of net short positions on the British Pound continues to grow. According to the CFTC Positioning Report for the week that ended on July 30, more speculative positions on the GBP were added in the last week, which has taken the volume of net short positions on the GBP to their highest levels in 28 months. This is not a surprise, as the fear of a ‘no deal’ Brexit were heightened by the election of hard core Brexiteer Boris Johnson as UK Prime Minister.
In the same report, it was also revealed that the volume of net longs in the US Dollar shot up to multi-month highs, boosted by an ‘insurance cut’ which did not stipulate a clear path to further cuts. The greenback was also boosted by speculative shorts on other currencies in the G-10, as the central bank chiefs in these countries have all begun to dance to the dovish tunes. These boosted demand for the greenback. However, the US-China trade war continues to hover over the USD like a cloud and this may produce a different situation this week.
Speculative shorts on the Euro also topped 5-week highs as an air of expectation of a new stimulus package regime under ECB Chair frontrunner Christine Largarde grew.
A reduction in net long positions for crude oil was also reported, citing concerns over and the US-China trade war.Don’t miss a beat! Follow us on Twitter.
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