GBP Remains Largest Short Despite Rally, EUR Longs Built For 2nd Week
Scotiabank FX Strategy Research notes that data from the latest IMM report (covering up to Tuesday April 18 & were released Friday April 21) showed that GBP remains the largest held net short despite its significant rally in response to the surprise announcement of the snap UK elections.
"This week’s report captures Tuesday’s election announcement rally and we had expected to see a material reduction in the near-record gross short position. The build in risk to both sides is notable and surprising (on the short side), with a $1.4bn w/w rise in gross longs and a $1.1bn w/w rise in gross shorts," ScotiaFX notes.
On the EUR front, ScotiaFX notes that an aggressive, second consecutive weekly build in risk pushing EUR gross longs to fresh record highs and shorts to levels last seen in mid-December.
Finally, ScotiaFX notes that AUD remains the largest held net long vs USD.
Source : https://www.efxnews.com/story/35868/imm ... t-2nd-week