USD longs dropped, EUR shorts reduced - Rabobank

Jane Foley, Senior FX Strategist at Rabobank, lists down the IMM Net Speculators’ Positioning as at 12 April 2016.

Key Quotes

• “Despite the dovish position of the ECB, speculators have reduced their net EUR shorts for four consecutive weeks, though the last net fall was small. Positions are now less than one third of the size noted at the start of the year.

• Net USD longs dropped last week having recorded very little change during the previous four weeks. Positions are at their lowest since June 2014 which was prior to the sharp increase in USD buying in H2 2014.

• JPY longs have pushed up to multi year highs suggesting that talk of FX intervention is not being taken seriously. Japan’s Chief Cabinet Secretary Suga has accused speculators for the recent rally in the yen.

• Net sterling shorts climbed for a fourth consecutive week, moving beyond the levels reached at the start of March to their highest point since June 2013. GBP remains vulnerable to political uncertainty ahead of the June 23 referendum on EU membership.

• Net CHF long positions moved higher last week to their strongest levels since May 2015. The SNB last month reiterated its threat that it could intervene to offset demand for the CHF.

• Net AUD long positions increased for a third consecutive week on optimism around the domestic economic outlook and stronger iron ore prices. CAD net positions held in positive territory. Oil remains a key influence.”