• USD shorts are at 13 month highs.
  • GBP longs getting close to levels not seen in 4 years.
  • EUR positioning now back to neutral levels as most shorts have squared up.
  • AUD mixed with macro players still long but shorter-term players tending to short.
  • Emerging market currencies are relatively flat.
Conclusion: If you’re bearish on the USD in the medium term, have a look at trading some emerging market currencies, like USD/INR, USD/MYR or USD/TRY. Amongst the majors, buy dips in EUR/GBP for the next leg of the rally.