Trader Sentiment & Positioning, week ending Aug 25th: GBP and NZD are trades of choice
GBP: Fairly consistent positioning amongst both the professional and developing traders, with short GBP the favoured play. Whilst sentiment is certainly bearish, commitment is lacking somewhat at present and positions will be ending the week down by around 50% since Monday.
NZD: Almost 100% consensus amongst funded traders, from both professional and developing communities, with short positioning dominating the boards. The long AUD/NZD trade is a particular favourite amongst technical traders and position sizes are healthy. EUR/NZD longs were also added to this week.
Gold and Silver: From quite long last week to almost completely flat positioning this week. Modest longs are being off-set by technical shorts.
EUR: Definite divergence in positioning between the professional traders and the developing traders; the former are generally long with medium commitment whilst the developing traders are tending to be short, especially in EUR/USD.
JPY: Position traders are quite long JPY still, carrying on from last week, but the shorter term swing and value traders have switched from long to short JPY. Overall commitment is medium. Interesting to note that one professional trader has been swing trading USD/JPY at close to maximum commitment, which suggests a high level of confidence in his analysis or information (ie that we are in a short-term range trading environment).
AUD and CAD: No major indications in either currency. The fundamental traders are still long of both but positioning is at modest levels.