25 Apr 2016
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.”
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.”