-
FX positioning: The awaited correction in GBP shorts
GBP net shorts finally showed a more material level of correction, declining from 30% net shorts (as % of open interest) to 23% (Figure 1). However, with the rising probability of an early UK parliamentary election this December, we view limited upside to GBP from here as: 1. the Brexit Withdrawal Agreement Bill is unlikely to be translated into law in parliament. 2. the uncertainty associated with early elections. This probably suggests that the bulk of the correction in speculative shorts is behind us. CAD recorded the largest increase in bullish positioning among the G10 currencies last week, with net longs rising ... (full story)