EUR net shorts picked up pace last week – Rabobank

Jane Foley, Senior FX Strategist at Rabobank, has assessed the latest positioning report from the CFTC.

Key Quotes

“The rapid advance of USD longs continued apace with positions returning to levels last seen in September 2015. Last week’s better tone was drawn from expectations that the Fed is set to hike rates by year end and by relief drawn from opinion polls pointing towards a Clinton victory in the November Presidential election – though the next set of data may offer a different perspective on US politics given the re-opening of the FBI led investigation into Clinton’s e-mail server scandal”.

“EUR shorts ramped higher again last week, returning to levels last recorded in January. At the October Council meeting, ECB President Draghi commented that QE would not end abruptly and thus signaled that the asset purchases programme could be extended beyond the current March 2017 end date”.