Originally published by AxiTrader
There have been some notable movements in speculative FX positioning. First of all, euro long positioning now stands at the highest level since May 2011. Net positioning currently lies at 96k long vs. 87k long previously. The data was collected on last Tuesday, so two days before the ECB meeting. It is likely that the break above 1.20 attracted further buying later in the week.
Meanwhile, speculators added slightly to their pound and yen short positions. While they remain overall bearish on the US dollar, they do not see much potential for a short squeeze in the pound and the Japanese yen. Pound net positioning is at 54k short (vs. 52k short previously) and yen net positioning at 73k short (vs 63k short previously).
However, GBP/USD techs are looking increasingly bullish - at least in the near-term - and it has cleared two important resistance levels. This has likely led to some position covering.
Speculators added to their Canadian dollar long positions ahead of the BoC. This week´s report is likely to show further Canadian dollar buying after the surprise rate hike by the Canadian central bank.
Australian dollar positioning stood at 65k (vs. 67k previously).