-
FX Positioning: Rising bets on EUR/CHF parity
CFTC data as of 19 May displays a broadly unchanged picture from the past few weeks. Investors positioning in the G10 sphere are still vastly in favour of defensive/low-yielding currencies while pro-cyclical currencies remain in the deeply oversold territory. image The antipodeans are the most oversold currencies, and their net shorts may increase (those of AUD in particular) more as the Australia-China and the US-China diplomatic spats intensify. As discussed in “AUD: Cast-iron sentiment”, the good commodity backdrop has provided AUD with some shelter to the initial skirmishes between Australia and China. As ... (full story)