🧮Sterling Net Long Trimmed, Remains Extended: Cable FX Macro

**As seen in IMM Positioning report 10/13/23, subscribe at cablefxm.co.uk/reports

• Using CFTC data, our positioning report shows hedge funds reducing their net long GBP position, the last reading at +29K contracts. However, several measures show leveraged funds' net long in GBP is still extended.1) Looking at a 5-year Z-score ranking in futures contracts, the pound leads our FX watch list at a 1.3. 2) The % of open interest in GBP futures held by hedge funds is still above its 1-standard deviation band

• Data shows investors are the most bullish in the pound, however, the Swiss franc and the New Zealand dollar are held net long too. The latter is close to throwing an overextended net long signal while the % of open interest in the franc is close to its 5-year average