8 Apr 2015
GBP/USD: targeting 1.43 – RBS
FXStreet (Barcelona) - Global FX Strategist at RBS, comment on the positioning data for GBP and further see more room for adding GBP shorts, targeting 1.43 levels for the pair.
Key Quotes
“Specs are net shorts, and their holding fell by 1.9k to 36.6k. It marks the second consecutive weekly fall which is somewhat against expectations of further GBP underperformance. Hedgers’ longs also fell 3k on the week to 55.6k.”
“On the disaggregated positioning data: (i) Levered players are net short 24k; unchanged on the week; (ii) Asset managers are also net shorts, and they added 4k on the week to a 3yr high of 52.8k. (iii) Dealers are the offsetting long, currently at 108k and also some 50k below 2010 General Election highs.”
“Note that Levered players and Asset Managers’ shorts are still some ~60k and 20k off record highs, respectively.”
“We see scope to add, which should support our expectations of GBP underperformance into the first week of May.”
“We are still targeting May 2010 lows of 1.43 on Cable, but this also needs US data to re-assert Dollar strength.”
Key Quotes
“Specs are net shorts, and their holding fell by 1.9k to 36.6k. It marks the second consecutive weekly fall which is somewhat against expectations of further GBP underperformance. Hedgers’ longs also fell 3k on the week to 55.6k.”
“On the disaggregated positioning data: (i) Levered players are net short 24k; unchanged on the week; (ii) Asset managers are also net shorts, and they added 4k on the week to a 3yr high of 52.8k. (iii) Dealers are the offsetting long, currently at 108k and also some 50k below 2010 General Election highs.”
“Note that Levered players and Asset Managers’ shorts are still some ~60k and 20k off record highs, respectively.”
“We see scope to add, which should support our expectations of GBP underperformance into the first week of May.”
“We are still targeting May 2010 lows of 1.43 on Cable, but this also needs US data to re-assert Dollar strength.”