Forex Flash: Crowded positions have been flushed - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that crowded positions have been flushed with GBP, and to a lesser extent CAD shorts being swatted away and commodities have bounced.

He adds that Gold too is making a nice move back up after its capitulation and he feels that just to show that it isn't just risk off positioning that has been under pressure, USD/JPY longs have been tested a bit this morning too after a non-event BoJ meeting. He writes, “If we follow this to its natural conclusion, we’ll see some more pressure on EUR/CHF shorts today, and likewise on longs in CEEFX (PLN springs to mind). More widely, another test of SPX highs, a further grind lower in credit spreads and very range bound government bonds all seem to be in order.”