Japanese Yen Bearish Bias Consolidates

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 15th of April showed that the investor’s bias for the most of the currencies remains the same although the sentiment is gradually transforming. The Euro bullish sentiment strengthened against the US dollar this week. The Euro weekly change has been the second largest positive change among major currencies. At the same time the Japanese Yen negative bias declined significantly on risk averse sentiment on the respective week but remains the largest net short position at minus $8.44 billion. Moreover, the samurai currency had the greatest weekly positive change of $2.29 billion confirming our previous week expectation of a positive week transformation.

Furthermore, the Canadian dollar was the only one with negative weekly change. Bearish bias increased slightly with the net short increasing to minus $3.22 billion. On the other hand the British pound bullish bias increased by $0.42 billion against the US dollar to $5.29 billion net long position and we expect that tendency to continue due to recent positive employment data. The Australian dollar bias remains bullish with net long position climbing to $0.75 billion. In the reporting week the kangaroo currency continues to build its positive bias and it is coupled with uptrend price pattern.

Lastly, the biggest long/short ratio was built by the Swiss franc according to the latest report. The second largest long/short ratio is with the British pound which is gradually building its bullish bias in recent weeks and at next week’s report could establish the largest long/short ratio.