G10 FX Positioning: Neutralisation in motion – ING

Analysts at ING explain that most G10 currencies registered a neutral bias on their weekly signal for positioning - suggesting that the reversal in the bearish USD positioning is starting to take hold.

Key Quotes

“Indeed, the USD weekly signal was bullish given that there was no change in the aggregate net short positioning.”

“AUD long positions look vulnerable to a correction amid a bearish commodity backdrop, while CAD net longs are also too high for our liking.”

“Though GBP long positions increased in the latest CFTC data, we suspect some of this has already unwound over the past week following the Tory Party conference.”