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Mixed Positioning Stories Noted

USD

Citi have cautioned that “USD momentum may be losing steam.” From a positioning perspective they note that their “latest flow & positioning report highlights that strong net USD buying by both hedge fund and real money accounts has pushed the Positioning Indicator to +6.8 out of +10 max long. This means investors overall now have significant long USD exposure.”

  • The most recent CFTC readings tell a different story. The latest metrics (good through Tuesday of last week) revealed that while the pullback in the USD net long position moderated, it held close to the lowest level seen since mid-2021.
  • The CFTC data indicates that the main positioning beneficiaries stemming from the drawdown in the long USD position continue to be the EUR (net long improved by 1.3ppts to 21% of OI in the latest week) and the GBP (net long of ~51k contracts, narrowing the gap with the 52w high of +63.7k).
  • Citi will of course draw on a wider pool of available information than just the CFTC report.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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