Net GBP longs pushed further into positive territory in pre-holiday week - Rabobank

"Net GBP longs pushed further into positive territory in the pre-holiday week on optimism surrounding Brexit negotiations," Rabobank analysts note in a report in which they assess the latest CFTC data.

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However, the surge proved temporary. Looking ahead EU/UK trade talks are likely to be tough and could expose cracks in PM May’s cabinet.

EUR longs have failed to hold the highs made in the middle of December ahead of the ECB policy meeting. Although ECB President Draghi was dovish last month, speculation about policy is likely to remain an influence on the EUR through 2018.

USD positions have held in positive territory for the past two weeks having found some incentive on the back of the Republican’s tax reform package. However, the number of net longs slipped last week.