IMM Positioning

Short GBP/USD positions are built further

• Speculative investors extended their overall positions in the week from 12 August to 19 August, as net long USD positions were built further against all G10 currencies except the NZD.
• The biggest move in speculative positions was seen in long USD positions against JPY and GBP. This has implied that short GBP/USD positions are now at a multi-year high, while long USD/JPY positions are back at levels not seen since 2007.
• Despite a further increase in long USD positions, speculative investors remain net long in both AUD and MXN against the USD.
• The net carry position (long AUD, NZD, GBP, short JPY, CHF) continues to be broadly flat, implying that carry trades are not in fashion at the moment.
• On the commodity market, speculative investors turned marginally net long in oil just prior to the spike in the oil price on 21 August.
• Net short positions in 2-year and 10-year notes were reduced, with the largest change seen in 2-year notes.

Danske Bank
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