The US Dollar (USD) net long positions have increased. The Euro (EUR) net long positions surged, driven by an increase in long positions, and the Pound Sterling (GBP) net long positions increased for the third consecutive week, in dramatic fashion, driven by an increase in long positions, Rabobank’s senior FX strategist Jane Foley notes.

GBP outperforms everyone

“USD net long positions have increased, driven by a decrease in short positions. Joe Biden announced his decision to drop out of the US presidential race over the weekend. We expect the “Trump trade” to unwind, at least partially, and the implications of this decision to be reflected in next week’s COT positioning.”

“EUR net long positions surged, driven by an increase in long positions, ahead of last week’s ECB policy meeting. The ECB released its decision to maintain the 4.25% refinancing rate, as anticipated by Bloomberg surveyed analysts and traders alike. It left the door wide open for a move in September.”

“GBP net long positions increased for the third consecutive week, in dramatic fashion, driven by an increase in long positions. GBP longs are at record levels at 0.183M contracts. GBP has retained its position as the best performing G10 currency year-to-date following the UK July 4 election.”