CFTC: bears all over the pound - Rabobank

Analysts at Rabobank noted that bearish bets against the pound continued to break new ground last week.

Key Quotes:

"That said, last week’s release of better than expected UK July retail sales data may offer some solace in the next snapshot of speculators’ positions.

EUR shorts edged lower for a third consecutive weekthough they remain far higher than the levels maintained over the spring.

USD longs won back a little ground. Some hawkish comments from Fed officials ahead of this week’s Jackson Hole event could lend the USD additional support this week.

Net JPY longs increased last week for a third consecutive week. Moves in the yen are usually well correlated with general levels of risk appetite in the market though the yen has recently firmed in reaction to concerns that BoJ policy action may be reaching the end of the road.

CAD net longs dropped for a third consecutive week.Despite looser fiscal policy, the market has become less certain that BoC rates will remain on hold into 2017.  

The level of AUD longs edged up for a second consecutive week as the carry trade continues to lend support despite the recent RBA rate cut."