FX Positioning: Euro short positions decreased before ECB meeting

CFTC positioning data for the week ending 7 September showed a decrease of EUR shorts positions before the ECB interest rate decision. The decrease in shorts pushed the net positions by 16K higher and slightly improved the overall positioning on the Euro. Gold's net positions descended marginally but remain bullish. NZD net positions turned positive with a substantial increase of longs that signal further appreciation of the New Zealand dollar. GBP lost 8K in net positions due to liquidations of longs. The positioning on the British Pound continues to look bearish. AUD still has an extremely bearish net positioning that decreased further by 9K contacts, however, we clearly noticed wide profit taking from shorts that resulted in a strong rebound of the Australian dollar.

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