ScotiaBank FX strategy research notes that data from the latest IMM report (covering up to Tuesday May 23 & were released Friday May 26) showed that the EUR net long has climbed to a fresh multi-year high, reaching $9.1 bn. on the back of a $3.9 bn. (fourth consecutive) w/w build driven by a combination of short covering of $2.1 bn. and a build in longs of $1.7 bn.
On GBP, Scotia FX notes that short covering in GBP has contined for a fifth soncesutive week, driving the bulk of this week's $0.7 bn. narrowing in the net short to $1.9 bn.
On CAD, ScotiaFX notes that market participants pared CAD risk into Wednesday's BoC, reducing both gross long and gross short position, delivering a modest $0.1 bn. w/w build in the net CAD short to a fresh $7.3 bn. record.
"CAD positioning is extended and shorts are vulnerable,"Bank argues.
Source of the graph:Bloomberg Pro Terminal
Senan Fuchedzhiev - Trader
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