There has been a massive rebalancing of speculative positions amongst professional managers over the last few weeks, according to a positioning indicator from one of the market’s biggest bank/prime brokers. The Greek election next weekend has been the catalyst and the absolute value of positions across the 32 currencies that they track is at a record low. This information is from one source only, but is probably a good cross-section of what’s happening in the market.
My take on this info is that we will see choppy markets in the major pairs pre-weekend and then some big breakout moves next week once the election is done and managers start piling into trading positions again.
