Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Investing.com sentiment index: speculators stay bearish on pound

Published 15/08/2016, 07:00 pm
Updated 15/08/2016, 07:08 pm
© Reuters.  Investing.com sentiment index shows that speculators stayed bearish on GBP last week

© Reuters. Investing.com sentiment index shows that speculators stayed bearish on GBP last week

Investing.com - The Investing.com weekly sentiment index published on Monday revealed that speculators stayed bearish on the British pound last week, as they looked ahead to more monetary stimulus from the Bank of England.

According to the report, 38.2% of investors were long GBP/USD in the week ended July 29, improving from 33.9% a week earlier.

The Bank of England cut interest rates to a record-low and launched fresh easing measures earlier this month in a bid to buffer the economy from a downturn following the Brexit vote.

Economic activity in the U.K. is expected to slow down sharply in the second half of the year as businesses face uncertainty over the country’s future direction in wake of the U.K.'s vote to exit the European Union, putting more pressure on policymakers to add to stimulus.

Meanwhile, 28.8% of investors held long positions in EUR/USD as of last week, compared to 30.8% in the preceding week.

Amongst the safe-haven currencies, 41.4% of market participants held long positions in USD/JPY, little changed from 41.2% in the previous week, while 50.0% of investors were long USD/CHF, up from 48.5%.

In the commodity-linked currencies space, 46.9% were long USD/CAD, rising from 41.3% a week earlier, 45.0% held long positions in AUD/USD, compared to 43.5% in the preceding week, while 36.9% were long NZD/USD, falling slightly from 37.1% a week earlier.

The report also showed that 57.5% of market participants held long positions in gold futures as of last week, compared to 60.1% in the preceding week.

Elsewhere, 49.2% of investors were long the S&P 500, improving from 42.8% a week earlier.

A reading between 50%-70% is bullish for the instrument, a reading between 30% and 50% is bearish, a reading above 70% indicates overbought conditions and a reading below 30% indicates oversold conditions.

The Investing.com series of indexes is developed in-house. Each index measures overall exposure to major currency pairs, commodities and indexes, using data from futures exchanges and OTC providers on all long and short open positions.

Latest comments

Rrr
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.