According to IMM net speculators’ positioning as at February 20, 2018, net short USD positions lessened modestly for a third consecutive week.
Key Quotes
“In the spot market the tone has been mostly USD positive in recent sessions, although the USD’s better tone has run out of steam today.”
“EUR longs edged slightly lower as some economic data releases disappointed. Positions are now at their lowest since December. ECB President Draghi had made some attempt to push back against EUR strength at the January policy meeting, though this was judged to be half-hearted. The next ECB policy meeting is scheduled for March 08.”
“Net GBP longs almost halved for a second consecutive week and retreated to their lowest level since November. Although BoE rate hike speculation has increased, the market is being buffeted by news regarding Brexit and has been re-evaluating the assumption made at the end of last year that the agreement between the EU/UK on Brexit legacy issues will set the tone for a smooth set of trade talks. Political uncertainty related to the Brexit transition period could keep a lid on the pound going forward as could confusion caused by the deep divide within PM May’s government.”
“Net JPY shorts dropped back to their lowest levels since October. Interest rate differentials should be negative for the JPY given the BoJ’s commitment to its QQE programme. That said, the market is doubting how long the Bank will maintain this position. Demand for safe haven remains a primary source of support for the JPY.”
“CHF net shorts slipped for a fourth consecutive time. Net positions have been in negative territory for twenty-nine consecutive weeks. Falls in risk appetite tend to be CHF supportive but fear of SNB intervention should prevent strong surges in demand for the CHF going forward.”
“CAD longs dropped back sharply. Oil prices, Nafta talks and the BoC policy outlook remain in view. AUD positions recovered some ground. Sentiment in the spot market has been choppy but AUD/USD is holding above its recent lows.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.