📝 CTAs Biased to Sell USD vs EUR and CHF: UBS Strategy

CTA signals continue to show a USD selling bias, with EUR positioning signals at this year's highs (net long 100% vs 83% on Tuesday). CHF positioning remains long 100% as the desk has seen real money sell dollars versus CHF. We have also seen real money accounts buying the dips in EUR after the PPI report, demand is relatively shallow for now.

Elsewhere in G10, CTA signals have reversed sharply in CAD over the past week, with positioning signals flat versus net short 83% at the beginning of April. RV positioning signals continue to dwindle, with target levels declining to net long 17% (down from 25% Tuesday and 34% last week). SEK Signals are also of interest reversing Tuesday's net short 8% signal to now be long 42% vs USD (however models are still 100% long EUR versus SEK).

- UBS Strategy