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Long EUR Positions Nearly Halved Ahead Of ECB Meeting‏

ByDanske Markets
Published 11/12/2013, 04:44 AM
Updated 05/14/2017, 06:45 AM
EUR/GBP
0.27%

The latest IMM data covers the week from 29 October to 5 November.

Speculative investors scaled back on long EUR, GBP and CHF positions and bought USD in the week ending 5 November. In particular, long EUR positions were unwound and long positions were almost halved from 25% of open interest to 13.1% ahead of last week's ECB meeting.

All in all, data suggests that speculative accounts remain long EUR and CHF, albeit close to neutral territory. GBP positioning appears to be neutral, which from a positioning point of view, supports our view that short EUR/GBP is the most attractive way to position for further EUR weakness. We favour a long position in GBP going into this week's BoE Inflation Report.

Most biased positioning is still seen in JPY and AUD which both remain more than one standard deviation below the historical average. Last week, investors marginally added short JPY and AUD positions. However, neither short AUD nor short JPY positions appear to be significantly stretched. In particular, short AUD positions remain quite far away from the record levels seen in July, suggesting that room exists for new shorts to be built up.

To Read the Entire Report Please Click on the pdf File Below.

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