In our latest FX positioning note, we highlighted how speculators’ stance on the dollar (according to CFTC data) had not moved in line with the recent dynamics in the spot market. This week, data up until 31 March shows that USD aggregate positions vs G7 currencies (i.e. G10 excluding the Norwegian krone and Swedish krona) are still in neutral territory, and at the bottom of the 5Y 1 s.d. band (Figure 1). {image} The data may have lost some explanatory power in the recent high-volatility environment, but it may also denote a preference among speculative investors for other defensive currencies (JPY, CHF and EUR) as ... (full story)