EURUSD
Non-Commercials decreased their net long positions in the Euro last week by 34k contracts to take the total position down to 44k contracts. The single currency net-buying has reduced for the first time after eight consecutive weeks of increases, reflecting a shift in sentiment on behalf of institutional investors.
Focus this week will be on Euro area inflation data, any slowing in the inflation will provide cover for the ECB to maintain current forward guidance and side step tapering talk for now.
GBPUSD
Non-commercials decreased their net short positions in Sterling last week selling by 2k contracts to take the total position to -38k contracts. Sterling short reduction ends three consecutive weeks of selling, the pause seems likely to be impacted by a growing sense of discord between members of the MPC, while Governor Carney remains reticent about rate rises, Cheif Economist Haldane a known dove came out with hawkish comments last week that put a bid under Sterling
A quiet data slate this week, with the main focus on political risk centred around ongoing Government coalition talks with the DUP coupled with continued Brexit negotiations.
Read more: https://www.orbex.com/blog/2017/06/fx-cot-update-usd-longs-increase-first-time-month/