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USD longs reduced in the approach to FOMC – Rabobank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Delhi) – Jane Foley, FX Strategist at Rabobank, lists down the IMM Net Speculators’ Positioning as at 15 December 2015.

    Key Quotes

    • “The level of USD longs reduced in the approach to the December 16 FOMC, possible on speculation that the Fed could lace its expected rate hike with dovish commentary.

    • For a second consecutive week the amount of EUR shorts dropped although they remain at heightened levels.

    • Net sterling shorts positions also lost a little more ground. The commentary from the BoE suggests it is in no rush to hike rates. That said, aside from the Fed it is the only other G10 central bank with a hawkish bias.

    • JPY shorts more than halved. This is the fourth consecutive week they have lost ground. Although the BoJ made some technical adjustments to its QQE policy last week, BoJ Kuroda continues to display a clear lack of enthusiasm for stepping up the size of its QQE programme.

    • CHF shorts moved back into positive territory. The SNB held policy steady at this month’s policy meeting and commented that unconventional policy measures have side effects.

    • Net AUD shorts have dropped for the fourth consecutive week on perceptions that the RBA may be reluctant to cut rates further. CAD shorts ticked higher again, the outlook for crude oil prices remains key.”
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