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23 Nov 2015
CFTC positioning: Continuous build up in USD - Rabobank
FXStreet (Delhi) – Jane Foley, FX Strategist at Rabobank, lists down the IMM net speculators’ positioning as at 17 November 2015.
Key Quotes
• “EUR shorts continued to extend in expectation of further policy action from the ECB on December 3. Shorts have reached their highest levels since the start of June.
• By contrast USD longs continued to push higher on anticipation of a tightening in policy from the Fed in December. While longs have reached their highest level since late August, the pace of change in positions remains moderate. This perhaps reflects the message from the Fed that the pace of policy tightening is likely to be gradual.
• Net sterling positions lost ground for the fourth consecutive week. While the BoE maintained a dovish tone at the presentation of the November Inflation Report, it is still only one of two G10 central banks preparing the markets for a tightening into 2016.
• JPY shorts also gained ground for a fourth consecutive week. The softer tone in the yen may mark an improvement in risk appetite.
• The growth of CHF shorts accelerated taking them to their highest level since January potentially on speculation of further SNB policy measures.
• Net AUD shorts increased for the third consecutive week. Weak coal and iron ore prices remains a source of pressure. CAD shorts also increased, the outlook for crude oil prices remains key.”
Key Quotes
• “EUR shorts continued to extend in expectation of further policy action from the ECB on December 3. Shorts have reached their highest levels since the start of June.
• By contrast USD longs continued to push higher on anticipation of a tightening in policy from the Fed in December. While longs have reached their highest level since late August, the pace of change in positions remains moderate. This perhaps reflects the message from the Fed that the pace of policy tightening is likely to be gradual.
• Net sterling positions lost ground for the fourth consecutive week. While the BoE maintained a dovish tone at the presentation of the November Inflation Report, it is still only one of two G10 central banks preparing the markets for a tightening into 2016.
• JPY shorts also gained ground for a fourth consecutive week. The softer tone in the yen may mark an improvement in risk appetite.
• The growth of CHF shorts accelerated taking them to their highest level since January potentially on speculation of further SNB policy measures.
• Net AUD shorts increased for the third consecutive week. Weak coal and iron ore prices remains a source of pressure. CAD shorts also increased, the outlook for crude oil prices remains key.”