CFTC Position Watch: Speculators add to EUR short positions after dovish ECB, cover GBP shorts ahead of Brexit deadline

EUR

* Large speculators added to EUR short positions in the previous week

* Following a period of consolidation, the downtrend appears to be resuming now

* Rate expectations have declined after the latest ECB meeting, where the central bank signalled that the next rate hike is unlikely to arrive before 2020

* Weak economic data - especially out of Germany - is weighing on EUR sentiment, and could keep the currency under pressure in the near-term

EUR
EUR

GBP 

* Speculators have covered their GBP short positions in recent weeks

* The recovery rally failed to convince, but it appears that few large speculators want to be caught on the wrong side of the trade as the Brexit data is approaching quickly

* The uncertainty remains high, and volatility is likely to increase ahead of March 29 deadline

GBP
GBP

JPY

* The latest CFTC data shows that speculators have started to add to their JPY short positions again

* Demand for the Yen has declined amid an improvement in risk appetite and recovery in equity markets

* The breakout above the major 110 level gave JPY bears additional confidence

JPY
JPY

AUD

* Speculators continue to have a bearish view on the Australian Dollar, although positioning is far from extreme levels

AUD
AUD

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