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Reviewing the latest CFTC report, “Having reached their highest level since April 2017 the previous week, USD speculators’ long positions have edged down slightly,” noted Rabobank Senior FX Strategist Jane Foley. “Concerns about the outlook for global growth and its impact on Fed policy have crept into the market.”

Key quotes

Short EUR positions surged in early November and although they subsequently eased back again, they rose again last week. Disappointing economic growth in Germany has weighed on sentiment even though ECB President Draghi has retained a constructive outlook.”

“GBP shorts dropped back for a second consecutive week. However, the situation regarding UK politics and Brexit has intensified. The pound remains driven by headlines regarding Brexit and fear of a crash exit from the EU is keeping the GBP vulnerable.”