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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 United States Commodity Futures Trading Commission (CFTC) recently reported that net positions in the Standard & Poor 500 Index (S&P 500) increased to $-307.6K from the previous week’s figure of $-321.5K.
The figures released by the CFTC use information from the Disaggregated Commitments of Traders (DCT) report, which helps track the behavior of large speculators and investors in the commodities market.
The net positions reported by the CFTC highlight the changing nature of market sentiment toward the S&P500, as the net positions in the stock index swung to an overall negative position this week. This move is attributed to the increasing risk aversion among large investors, as concerns lingers regarding potential volatility in the stock market.
However, it is also worth noting that the net positions in the S&P500 remains relatively flat compared to the previous week. This could denote that while large investors and speculators may be selling off longer-term positions in the stock index, they are not adding to their short positions in a significant manner.
Nevertheless, market participants should take note of the increasing risk-off sentiment towards the S&P 500, particularly in light of the recent correction in stock prices and the general uncertainty surrounding the economic recovery in the United States. As such, investors should exercise caution and stay alert to any potential shifts in market sentiment in order to better manage their portfolios.