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GBP/USD extends slide to the 1.2400 area
GBP/USD retreated further during the American session and hit fresh daily lows under 1.2400. Risk aversion and higher US yields weighed on the pair, that after Friday’s slide, is about to end the week flat.
The latest report from the Commodity Futures Trading Commission (CFTC) shows a large decrease in net positions for Australian Dollar (AUD) from -27.2K to -37.9K.
The report confirmed that the gross long position in the AUD fell from 48.5K to 38.9K, while the gross short position was slightly up from 77.6K to 77.7K. This led to a sizeable decrease in net positions over the last week, from -27.2K to -37.9K.
The decrease in net positions indicates that the AUD has weakened against a basket of foreign currencies over the last week, as traders have become more bearish on the Australian Dollar. This has been driven in part by concerns over the potential impact of a policy shift in China, which has dampened demand for the AUD in the near term.
Furthermore, the sharp drop in net positions has been exacerbated by a growing sense of caution in the markets, as investors become increasingly concerned over potential geopolitical risks and trade tensions. This has contributed to a strong US Dollar (USD) and a weak AUD, as traders increasingly seek the relative safety of the greenback.
Overall, the latest CFTC report shows a sharp decrease in net positions for the AUD over the last week, with traders dumping their holdings and turning bearish on the Australian Dollar. This suggests that the AUD may be set for further losses in the near future, at least until market sentiment turns more favourable for the AUD.