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Non-Commercials increased their net short positions in the Euro last week selling further 9k contracts to take the total position to -16k contracts. EUR has been under steady selling pressure over recent weeks due to increased political uncertainty in the eurozone and the growing policy divergence between the Fed and the ECB.
Over the week ahead the market is bracing for the submission of the Italian budget proposal as well as the European Summit by which time the UK is to agree on a solution to the Irish border issue. Failure to agree a solution to the issue will exponentially increase the chances of a no deal Brexit which is likely to weigh on both GBP and EUR.
Non-Commercials increased their net short positions in Sterling last week selling a further 1k contracts to take the total position to -60k contracts. Despite the ongoing Brexit uncertainty, short positions in GBP are down by around 25% over the last month. The market is now waiting to see whethe...
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