Investors Turn Net Short Sterling‏

Published 02/19/2013, 05:28 AM
Updated 05/14/2017, 06:45 AM

The latest IMM data covers the week from 4 February to 12 February .

GBP shorts reach June 2012 levels: The Sterling has been the second worst performing G10 currency this year; only the yen has fared worse. As a result, investors have been unwinding long GBP positions and are now net short 10% of open interest. GBP positions are, however, by no means stretched yet and there is significant potential for investors to turn even more short.

Slight reduction in euro longs: The euro has corrected lower during February, and investors have scaled back net longs from 15 to 10 percent of open interest.

Profit taking in yen: The yen sell-off stalled last week at the same time as investors scaled back short positions. Net shorts are now at 29% of open interest, which is the lowest level since late November, when the USD/JPY was trading in the low 80s. The sell-off thus appears backed by more than just speculative flows.

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