- The latest IMM data covers the week from 17 February to 24 February.
- During the week to 24 February USD/JPY rose close to 5% as the yen sell-off accelerated on the back of weak Japanese activity data - but despite poor equity market performance. The rapid turnaround of the yen can partly be explained by the fact that the market was very long yen as market sentiment changed. However, this can only be part of the explanation as today's IMM data shows that while net long JPY positions were unwound, large amounts of net longs are still in place.
- Speculative investors also reduced net short EUR positions, as EUR/USD approached 1.25 around 17 February, which has been the bottom of the past month's approximate 1.25-1.30 range. However, we expect that investors will find it hard not to continue to sell the single currency, as especially the CEE leaves it with a heightened risk premium.
- Speculative positions in the remaining currencies were broadly unchanged and investors remain net long USD against all currencies, covered in the IMM, but the yen.
- On the commodity market, speculative investors reduced net long oil positions.
