USD Longs Dropped, EUR Shorts Reduced - Rabobank
Jane Foley, Senior FX Strategist at Rabobank, lists down the IMM Net Speculators’ Positioning as at 03 May 2016.
Key Quotes
“Despite
the dovish position of the ECB, speculators have reduced their net EUR
shorts for a run of seven consecutive weeks. Shorts now stand at just
13% of their December high and are at their lowest level since May 2014
before the ECB initially cut its discount rate into negative territory.
Net
USD longs have continued to drop. Positions are at their lowest since
June 2014 just prior to the sharp increase in USD buying in H2 2014.
JPY
longs edged lower for a second consecutive week. They recently reached
multi year highs suggesting that talk of FX intervention has not been
taken seriously.
Net sterling shorts lost more ground. Last month
they climbed to their highest point since June 2013. GBP remains
vulnerable to political uncertainty ahead of the June 23 referendum on
EU membership. Opinion polls suggest that the ‘Remain’ and ‘Leave’ camps
are neck and neck.
Net CHF long positions slipped further. Last
month they moved to their strongest levels since June 2015 despite the
SNB’s reiteration of its threat that it could intervene to offset demand
for the CHF.
Net AUD long positions have dropped on the back of
the RBA’s rate cut and weaker inflation projections. CAD net positions
held in positive territory for a fifth consecutive week. Oil prices
remain a key influence.”
