Credit Agricole's latest analysis of FX positioning data reveals that the Euro (EUR) continues to be the most significant long position within the G10 currencies. Meanwhile, the Canadian Dollar (CAD) persists as the most substantial short position.
EUR Positioning: The Euro remains a favorite among long positions...Corporate inflows are notable, while banks, hedge funds, and real money investors show a tendency to exit their Euro positions.
CAD Positioning: The Canadian Dollar is still facing the highest short interest in the G10 currencies. Last week saw additional selling, largely influenced by IMM flows. The data indicates that banks, hedge funds, and real money investors are entering short positions, whereas corporates are leaning towards inflows.
The positioning dynamics within the G10 currencies underscore the Euro's resilience as a preferred long. On the other hand, the Canadian Dollar's status as the primary short suggests market participants' bearish outlook on CAD, which could have implications for its near-term performance against other major currencies.