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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Friday's CFTC update showed that GBP's recent bull run had coincided with a continued improvement in the CFTC-logged net position.
In data collected at the Tuesday close, GBP's net position had improved by close to 5% of open interest over the previous week as speculators bought a net of near 9,000 contracts. This drove the 52-week Z-score to 2.15, the highest among currencies surveyed.
This shift in net positioning (hitting a new 52-week high) coincided with the fierce bull run in GBP, resulting in GBP/USD hitting new multi-year highs of 1.4237 – the best level for spot since 2018 and nearing the key double-top resistance of 1.4345/1.4377.
Elsewhere, markets also lifted the CHF net position despite recent underperformance in the currency. The CHF net position improved by over 8,000 contracts on the week. Nonetheless, USD/CHF remains bid, topping the 200-dma at the beginning of this week.
The JPY position worsened most notably, with a net 8,500 contracts sold, equivalent of 4.1% of open interest. This pressured the JPY positioning indicator close to its lowest levels in a year. JPY spot weakness has persisted, with USD/JPY touching the best levels since August 2020 early Monday.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.