Synopsis:

Credit Agricole’s latest positioning model shows EUR remains the most crowded long in G10 FX, while NZD holds the largest short exposure, reflecting divergent investor sentiment and flow dynamics.

Key Points:

• EUR as Top Long:
  The Euro continues to see broad-based buying, with inflows from banks, corporates, and real money, even as hedge funds reduced exposure.

• NZD as Top Short:
  The New Zealand Dollar remains the largest short, led by IMM-driven hedge fund buying offset by outflows from banks, corporates, and real money.

• Tactical vs. Strategic Flows:
  EUR demand was mainly tactical, while NZD positioning reflects more structural bearish sentiment.

Conclusion:

EUR remains structurally supported by broad-based investor demand, while NZD continues to suffer from widespread outflows. The divergence highlights positioning asymmetry across G10 and could shape upcoming FX volatility.