FX.co ★ Decline in GBP Speculative Net Positions: A Cautious Outlook for the British Pound

The Commodity Futures Trading Commission (CFTC) has released its latest figures on the speculative net positions for the British Pound (GBP), showing a significant decrease from earlier levels. According to data updated as of 20 September 2024, the indicator has dropped from 90.3K to 63.0K.

This 30% decline suggests a more cautious stance among traders towards the GBP. The fall in speculative net positions, which represents the difference between the total long and short positions held by speculators, can be seen as a signal of diminishing bullish sentiment around the British Pound.

Several factors might be contributing to this shift, including uncertainty around the UK’s economic outlook, recent macroeconomic indicators, and potential geopolitical risks. Market participants will now be closely watching upcoming economic releases and policy announcements for further guidance on the pound’s trajectory.