UK CFTC data shows GBP non-commercial net positions increased to -\u00a352K from -\u00a354.7K. <\/p>\n
The move indicates a smaller net short position in sterling compared with the previous report.<\/p>\n
We are seeing a slight reduction in net short positions on the British Pound, moving from -\u00a354.7K to -\u00a352K. This suggests some of the most pessimistic traders are closing their bets against sterling. However, the overall market sentiment remains clearly bearish, not bullish.<\/p>\n
This cautious shift likely reflects recent data showing UK inflation for March 2026 cooled to 2.8%, moving closer to the Bank of England’s target. While preliminary Q1 GDP growth was a sluggish 0.2%, it did avert a recession, removing a key tail risk for now. This mixed but slightly improved picture is prompting a re-evaluation of the most extreme short GBP positions.<\/p>\n
The key question remains the timing of the Bank of England’s first rate cut, which markets are now pricing for the third quarter. Recent meeting minutes showed a growing dovish sentiment within the committee, with more members favouring a cut. This contrasts with the US Federal Reserve, which continues to signal a “higher for longer” stance, capping any significant rally in GBP\/USD.<\/p>\n
We remember the significant sterling volatility throughout 2025 following the new government’s first budget, and traders are still wary of being caught short. Given the reduced pessimism but lack of a clear bullish catalyst, selling out-of-the-money options to collect premium could be a prudent strategy. This approach capitalizes on the idea that sterling may trade within a range while we await a definitive policy move from the Bank.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" CFTC data shows GBP non-commercial net positions rose to -\u00a352K from -\u00a354.7K, trimming net shorts.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-45516","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t