MUFG Research discusses GBP form the positioning front.
"The weekly IMM positioning data revealed an interesting jump in appetite for holding the pound. Leveraged funds GBP long position jumped to just over 32,500 contracts, which is the largest net long position since the extreme period of volatility immediately following the covid pandemic market turmoil in March 2020. If you exclude that brief period when positioning was larger, this is the largest long position since April 2018. Using our z-score measure to gauge how extreme positioning is (standard deviation from a 2-year average), the current level is over 2 standard deviations from the average," MUFG notes.
"Across the G10 space, the GBP position is the standout with all other G10 currencies less than one standard deviation. Again, for GBP, 2018 was the last time we had a z-score of 2.0 when GBP/USD was trading above the 1.4000 level," MUFG adds.
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