Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes last week’s CFTC positioning data.

The wind is in the Euro’s face, but it’s kinder to Sterling

“Last week’s CFTC positioning data suggest the Euro will find further gains hard work. The net USD short against the EUR has increased again and remains bigger than the overall USD short. That means the market is long USD against the balance other currencies.”

“This morning’s soft Chinese export and import data haven’t done AUD any favours, but USD/CAD should continue to benefit from belief that the Fed has finished raising rates, as long as that doesn’t come into question.”

“The market remains (marginally) long GBP for a third week. If the Euro faces headwinds from what’s priced into the rate curve and from positions, then the Pound benefits from tailwinds for now.”