• The latest IMM data covers the week from 7 to 14 July.
    • Speculative investors increased their bets that the yen would appreciate further, as USD/JPY fell as low as 91.74 on 13 July. However, following the collection of the latest IMM data, the yen has seen renewed pressure, as global equity markets have rebounded strongly on Q2 earnings reports, and USD/JPY has moved back towards 95 – likely supported by stop-losses taken on long JPY positions.
    • Net long EUR positions were increased modestly, but remain at reserved levels at just 12% of open interest. However, the pick-up in risk appetite means that EUR/USD remains bid and a break above the 1.4201 high from 1 July could see increased speculative interest in the pair.
    • Long positions in AUD were scaled back and net longs as a share of open interest are now back below 30%. However, AUD has recovered strongly since 13 July appreciating 5% against USD. This move is likely to have coincided with increased interest in AUD longs – even as data shows that the Reserve Bank of Australia sold a record amount of AUD in June.
    • Confidence in the dollar continues to abate and net short positions in the USD index remain at close to 40% of open interest – levels not seen since late 2007.