EUR shorts increased moderately, JPY shorts extended - Rabobank

According to IMM net speculators’ positioning as at July 9, 2019, net EUR short positions increased moderately having dropped the previous week to their lowest levels since October 2018, notes the research team at Rabobank.

Key Quotes

“The level of JPY shorts extended last week having dropped sharply during the previous three weeks. News of a truce on US/China trade wars and expectations of lower interest rates from the Fed will be helping risk appetite, but the safe haven JPY is traditionally particularly sensitive geopolitical news.”

“Net short GBP positions increased for a fourth consecutive week on fears about a no deal Brexit and a weakening UK economic backdrop.”

“CHF net shorts dropped a little further and are at their lowest levels since April 2018.”

“CAD net positions increased their hold on positive ground on speculation that policy divergence between the Fed and the BoC could end in the foreseeable future and on better oil prices.”

“AUD net shorts dropped back for a second week. Hopes are building that the RBA’s pre-emptive rate cuts and looser fiscal policy outlook may be sufficient stimulus for now.”