USD positions moving higher, EUR longs losing ground - Rabobank

Analysts at Rabobank note that according to the IMM net speculators’ positioning as at June 05, 2018, speculators’ USD positions have been in positive territory for four consecutive weeks and are continuing to move higher.

Key Quotes

“This week’s key central bank meetings in addition to political events are likely to have a firm bearing on the direction of the USD.”

“EUR longs continue to lose ground although the pace of the declines has ebbed.”

“GBP net longs edged lower last week. Although they are off their recent lows, they remain substantially below their April highs.”

“Net JPY short positions lost some ground last week as the panic regarding Italian politics subsided.”

“CHF net shorts dropped after four consecutive increases. Reports of an unwinding of large Russian positions may have created additional pressure on the CHF this spring. Political tensions in Italy failed to lend the safe haven CHF support last month.”

“CAD shorts consolidated having dropped sharply the previous week. In the spot market the CAD has performed poorly in response to the stand-off between the US and Canada at the G7 meeting. AUD shorts edged lower slightly, AUD was unable to hold onto gains made in the spot market last week on the back of better data releases.”