EUR Shorts Reduced, USD Longs Consolidating - Rabobank
Jane Foley, Senior FX Strategist at Rabobank, lists down the IMM Net Speculators’ Positioning as at 05 April 2016.
Key Quotes
•
“Despite the dovish position of the ECB, speculators have reduced their
net EUR shorts for three consecutive weeks. Positions are now less than
one third of the size noted at the start of the year.
• USD net
longs are effectively consolidating; very little change has been
recorded during the past four weeks. Positions are effectively back to
levels held prior to the increase in USD buying in H2 2014. This may
explain the reluctance of speculators to further cut USD longs despite
the dovish tone of Fed Chair Yellen.
• JPY longs pushed a little
higher consistent with the gains of the JPY in the spot market. Japan’s
Chief Cabinet Secretary Suga has accused speculators for the recent
rally in the yen.
• Net sterling shorts climbed for a third
consecutive week though they are still below the levels reached at the
start of March when they increased to their highest point since July
2013. GBP remains vulnerable to political uncertainty ahead of the June
23 referendum on EU membership.
• Net CHF long positions ticked a
little higher last week to their highest levels since July 2015 The SNB
last month reiterated its threat that it could intervene to offset
demand for the CHF.
• Net AUD long positions increased for a
third consecutive week on optimism around the domestic economic outlook.
CAD net positions moved back into positive territory for the first time
since May 2015. Oil remains a key influence.”
(Market News Provided by FXstreet)
