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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 European Monetary Union has reported its latest CFTC EUR NC Net Positions in their latest report. According to their data, the CFTC EUR NC Net Positions is standing at €163.3K against €143.4K, which is an increase of €20K or 13.77% from the previous week.
The report on the CFTC EUR NC Net Positions looks at the net long and short positioning of non-commercial traders of the euro currency in relation to the US dollar. Non-commercial traders are those who are not looking to trade the currency for profits, but are more invested in the euro currency for its portfolio of investments.
The increase of €20K in the CFTC EUR NC Net Positions indicates that investors are increasing their reliance on the euro currency and the region it serves. This could mean that the European economy is in a more stable state and there is a renewed hope in its future prospects.
The increase in net positions also implies that investors may be shying away from the US dollar, which has been in a tenuous state in recent weeks as the Trump administration has been under scrutiny from foreign countries and from its own constituents.
It is important to recognize that the CFTC EUR NC Net Positions is just one of the many factors to measure the financial health of a region. With that said, the current increase does certainly point to a more positive outlook for the European Union and its citizens.