Record EUR Shorts Decline Just Barely, As GBP Spec Shorts Hit All Time Record
The CFTC's just released Commitment of Traders report indicates that Non-Commercial, speculative net positions in the Euro declined just marginally from -113,890 to -107,143 for the week ended May 18, Tuesday. With central banks throwing everything at shorts, up to and including the tungsten-plated kitchen sink, the response is surprisingly muted. However, with the major wave of SNB/ECB initiated forced short covering beginning on Thursday, and driving the EURUSD up by 300 pips from 1.21 in one day, we expect the short number to decline substantially. If it does not, "speculators" can tap themselves on the back for pulling off a feat bigger than even George Soros ever achieved- taking on all central banks and not wavering. If that is indeed the case, we salute them. On the other hand, Soros replicants are certainly on fire in the GBP: the cable saw a new record number of shorts in the past week, which increased by -4,557 to -76,745.
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