Friday was the final trading day of the week, month and quarter, and that brought with it a wave of positioning rebalancing. The US dollar continued to weaken against the pound, finishing the week above 1.2500. Crowd positioning in EUR/USD was quickly neutralised after the euro’s tumble last week. Traders’ opinions are divided and therefore short and long positons are evenly split.
Early April will see a number of events which may drive volatility, including the Reserve Bank of Australia’s policy meeting on Tuesday, the March federal open market committee minutes on Wednesday and US non-farm payrolls on Friday.
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