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EUR shorts reduced, USD longs consolidating - Rabobank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    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.”
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