GBP NET SHORT NARROWS FROM LAST WEEK’S RECORD
Data in this report cover up to Tuesday Aug 30 & were released Friday Sept 2.




• This week’s changes in sentiment were relatively limited as investors added to EUR shorts while paring risk in CAD. The net GBP position narrowed from its record short as investors added risk to both sides, and investors added to bullish JPY positions for a fifth consecutive week. The aggregate USD position softened modestly.




• Investors pared CAD risk in the week ended August 30th, reducing both gross long and short positions in a manner that delivered a modest $0.4bn build in the net long to $1.7bn. The w/w changes served to reduce some of the risk that had been built through August (bottom right p1). The AUD net long held steady at $3.2bn.




• EUR sentiment deteriorated for the first week in five, the net short widening $0.6bn to $11.4bn on the back of a build in gross shorts. EUR positioning continues to be dominated by EUR bears (middle right p2) and this week’s shift may hint to early signs of a turn following a four week run of short covering.




• The net short GBP position narrowed modestly from last week’s $7.8bn record following a modest build in both gross long and gross short positions. The latter have climbed to a fresh record high. GBP remains the most vulnerable to positioning, with shorts outnumbering longs 3.3 to 1.



• JPY positioning continues to shift in a bullish manner, with this week’s modest $0.2bn rise in the $7.7bn net long position driven by a combination of short covering and build in longs.







Regards All.
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