JPY net positioning switches to net long – Goldman Sachs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at Goldman Sachs, lists down the latest IMM CFTC Commitment of Traders report for January 5, 2016.

    Key Quotes

    “In this week’s CoT report, USD net long positioning decreased $3.0bn to $30.5bn. Most of this came in a $2.2bn move against the yen, as JPY net positioning switched from net shorts to net longs this week. JPY net longs currently stand at $0.4bn, and this is the largest JPY net long positioning since October 2012. This move occurs alongside increasing concerns about China – as evidenced by the GS China Growth Basket sliding to its lowest levels since the crisis – and we often see JPY stronger on higher China risk. Overall, we continue to expect the BoJ to ease policy further in the coming months, and we believe the market has been too quick to write off the additional measures announced at the last BoJ meeting.

    EUR net shorts remained fairly stable this week, decreasing $0.4bn to $21.6bn, and EUR net positioning has remained in $3bn range since the last ECB meeting on December 3. This range is fairly narrow, given that positioning increased by $15.4bn in the 6 weeks ahead of the monetary policy meeting.”
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