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FX Positioning: Where have the bulls gone?
CFTC FX positioning data as of 2 June still failed to realign with the recent dynamics in the spot and futures markets. Despite some signs of a short squeeze in the New Zealand dollar, the unchanged and deeply short positioning in the Australian and Canadian dollars - along with net longs in defensive Japanese yen and Swiss franc – still reflects a risk-off environment (figure below). image NZD had long been the most oversold currency in the G10 when global risks took centre stage. The currency sold off at the peak of the US-China trade war last year and during the pandemic-induced market shock this year. Last ... (full story)