Credit Agricole, a prominent financial institution, provides insights into the positioning of the Euro (EUR) and the Canadian Dollar (CAD) in the G10 FX space.

Key Takeaways:

1. Euro (EUR) Positioning:

   • Current Status: The EUR continues to be the most prominent long position within the G10 FX currencies.
   • Recent Activity: Although there was some selling interest observed in the past week, the selling was largely influenced by the International Money Market (IMM) flows.
   • Specific Flow Data:
     • Inflows: Corporates and real money investors showed interest in buying.
     • Outflows: Banks and hedge funds were more inclined to sell the currency.

2. Canadian Dollar (CAD) Positioning:

   • Current Status: The CAD has reclaimed its position as the most prominent short within the G10 FX currencies.
   • Recent Activity: There was a notable selling interest in the CAD over the last week, with IMM flows largely driving this activity.
   • Specific Flow Data:
     • Inflows: Banks, corporates, and real money investors were on the buying side.
     • Outflows: Hedge funds led the selling interest.

Conclusion:

Credit Agricole's analysis underscores a distinct positioning dynamic for the EUR and CAD. The EUR remains firmly as a favored long position within the G10 FX despite recent selling pressures, whereas the CAD has emerged as the primary short position due to renewed selling interest. The bank's data delves deeper, revealing the specific types of investors influencing these trends, with IMM flows playing a significant role in both currencies.