The CFTC Positioning Report for the week ended on October 22 revealed the following:
- The better prospects around the Brexit negotiations improved the sentiment around the Sterling and forced net shorts to retreat to multi-week lows. However, uncertainty around the process and UK politics resurfaced after the cut-off data, surely reflecting in the next report.
- USD net longs dropped to the lowest level since late August on the back of the persistent optimism around a Brexit deal and the effect on the rest of the risk-associated complex.
- By the same token, EUR net shorts went down to the lowest level in the last six weeks. However, the confirmation of the ‘looser for longer’ policy by the ECB at its meeting (after the cut-off date) might have prompted changes in the next report.