Trader positioning on Capital.com has shifted noticeably across asset classes, highlighting the impact of recent global market developments. As economic and financial uncertainty intensifies, investors are recalibrating their strategies to navigate a more volatile environment.

In US equity indices, sentiment remains divided. Long positions in the Nasdaq have edged down to 51% from 55% a week earlier, bringing the index close to neutral territory and within reach of flipping to a net short bias. In contrast, the Dow has gained bullish momentum, with 67% of traders now holding long positions, up from 63% the previous week.

Commodities have seen more pronounced changes, particularly following the closure of the Strait of Hormuz. Gold positioning has strengthened, with long positions rising to 79% from 76%, while silver remains heavily skewed to the long side at 81%, albeit slightly down from 84%. The most dramatic shift has been in WTI crude oil, where positioning flipped from 57% short to 68% long within a week. This reversal reflects short-covering after last week’s price dip, alongside fresh buying interest as traders moved to capitalise on lower entry points.

Currency markets have also experienced notable repositioning. EUR/USD has moved from 56% long to 57% short, as traders anticipate potential weakness in the euro amid energy-related pressures. GBP/USD has shifted from 61% long to 54% short, while AUD/USD has transitioned from 52% long to 54% short. GBP/JPY has seen a complete reversal, moving from 58% long to 58% short, underscoring a broader shift in sentiment across major currency pairs.

Monte Safieddine, Head of Market Research, Capital.com MENA said, “The breakdown of talks in Pakistan and the subsequent blockade of the Strait of Hormuz have introduced a new layer of uncertainty across global markets. The positioning changes we are seeing in gold and silver are one of holding on any pullback while shorts look to swiftly exit in oil and buy on any significant dip. What is notable in the equity index data is that positioning has not moved uniformly, opting to close out in tech while going trend-trading in the Dow. The week ahead brings more pricing data and earnings from the financial heavyweights, but the direct negative impact from higher oil prices on risk appetite means traders in all asset classes will be noting energy.”