Longs are Building in AUD, CAD, NZD and JPY - SocGen
Kit Juckes, Research Analyst at Societe Generale, notes that the CFTC
data paint a now-familiar picture of speculative FX positioning: Longs
are building in AUD, CAD, NZD and JPY.
Key Quotes
“MXN
and EUR shorts are dwindling away and only GBP shorts grew in the week
to Tuesday. The sum of positions is net short USD for the first time
since July 2014. The four months after that saw the dollar rally 20% in
trade-weighted terms as dollar longs were built up.
The current
environment is very different of course, but anything which makes the
markets price in a faster pace of rate hikes than the current one (1.5
hikes by the end of next year) would be bad for risk sentiment and good
for the dollar.”
