CFTC: GBP is breaking records – Rabobank

Net long positions in the US Dollar (USD) have increased. Net long positions in the Euro (EUR) have jumped, driven by an increase in long positions, and net long positions in the British Pound (GBP) have increased for a third consecutive week, dramatically, driven by an increase in long positions, notes Jane Foley, senior FX strategist at Rabobank.

GBP beats everyone

“Net long USD positions have increased, driven by a decline in short positions. Joe Biden announced his decision to withdraw from the US presidential race over the weekend. We expect the “Trump trade” to unravel, at least partially, and for the implications of this decision to be reflected in COT positioning next week.”

“Net long EUR positions jumped, driven by a rise in long positions, ahead of last week’s ECB policy meeting. The ECB published its decision to hold the refinancing rate at 4.25%, as anticipated by analysts and traders surveyed by Bloomberg. It left the door open for a move in September.”

“Net long GBP positions rose for the third consecutive week, dramatically, driven by an increase in long positions. GBP long positions are at record levels at 0.183M contracts. GBP has maintained its position as the best performing G10 currency so far this year following the July 4 UK election.”

Source: Fx Street

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