CFTC positioning: USD longs creep higher - Rabobank

Jane Foley, Senior FX Strategist at Rabobank, lists down the IMM Net Speculators’ Positioning as at 29 March 2016.

Key Quotes

• “Having declined for six consecutive weeks, USD positions have now crept a little higher for the past two week. USD longs are back to levels held prior to the run up in positions in H2 2014. This may explain the reluctance of speculators to further cut USD longs despite the dovish tone of Fed Chair Yellen.

• Speculators reduced their EUR shorts a little further last week despite the dovish tone of the ECB.

• JPY longs ticked a little higher. JPY longs have been reluctant to drop consistently over the past month or so despite the better tone of many risky assets.

• Net sterling shorts climbed for a second consecutive week though they are 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 positions ticked a little higher last week though they remain a little below the levels recorded in the middle of March. The SNB last month reiterated its threat that it could intervene to offset demand for the CHF.

• Net AUD long positions increased for a second consecutive week on optimism around the domestic economic outlook. CAD shorts fell for the ninth consecutive week aided by this year’s better tone in oil.”