The Chicago Mercantile Exchange's Commitments of Traders (COT) report for the week ending November 14, 2023, shows that there are signs of weakness for the British pound (GBP).
Non-commercial traders, which are typically hedge funds and other large institutional investors, reduced their long positions in GBPZAR by 4,735 contracts. This was the largest weekly decrease in long positions since the week ending March 1, 2023. However, commercial traders still have a net long position in GBPZAR, which suggests that they are still generally bullish on the pair.
The decrease in long positions from both non-commercial and commercial traders suggests that there is a growing number of traders who are expecting the GBP to weaken against the ZAR. This could be due to a number of factors, including:
Based on the COT report, it is likely that the GBP will continue to weaken against the ZAR in the near term. Traders should be prepared for further declines in the pair.
source: www.cftc.gov/
Non-commercial traders, which are typically hedge funds and other large institutional investors, reduced their long positions in GBPZAR by 4,735 contracts. This was the largest weekly decrease in long positions since the week ending March 1, 2023. However, commercial traders still have a net long position in GBPZAR, which suggests that they are still generally bullish on the pair.
The decrease in long positions from both non-commercial and commercial traders suggests that there is a growing number of traders who are expecting the GBP to weaken against the ZAR. This could be due to a number of factors, including:
- The ongoing economic uncertainty in the United Kingdom. The UK economy is facing a number of challenges, including rising inflation, interest rates, and the ongoing war in Ukraine. These factors could lead to a decline in demand for British goods and services, which could weaken the GBP.
- The strengthening of the South African rand. The South African rand has been strengthening in recent weeks due to a number of factors, including rising commodity prices and the ongoing depreciation of the US dollar. This could make the ZAR a more attractive investment for foreign investors, which could further weaken the GBP.
Based on the COT report, it is likely that the GBP will continue to weaken against the ZAR in the near term. Traders should be prepared for further declines in the pair.
source: www.cftc.gov/