EURUSD
Non-Commercials increased their net long positions in the Euro last week buying a further 8k contracts to take the total position to 73k contracts. Market expectations for further tapering announcements continue to build ahead of the upcoming June ECB meeting, which is this week’s headline event. Positioning data reflects a clear shift n bias among institutional investors as long positions continue to grow. With expectations so high and positions continuing to build there is plenty of scope for disappointment if the ECB refrain from making any adjustments at this meeting and an unchanged or dovish statement is likely to fuel some long covering if EUR
GBPUSD
Non-Commercials increased their net short positions in Sterling last week selling a further 6k contracts to take the total position to -30k contracts. Last week’s sales of Sterling were the first time the UK currency has been net-sold on a weekly basis in the last two months. Uncertainty continues to build ahead of the UK elections this week as the latest polls continue to show a dramatic narrowing of the Conservative party’s lead over the Labour party. The average lead has now fallen to just 7% from 23% shortly after the election was announced in April. Momentum has fizzled out in Sterling as traders await the outcome of the elections.
See more: https://www.orbex.com/blog/2017/06/fx-cot-update-sterling-net-sold-for-first-time-in-8-weeks/