According to IMM net speculators’ positioning as at November 7, 2017, speculators turned positive on the USD last week for the first time since mid-July and is a continuation in the improvement in sentiment that has lifted net USD positions since October, explains the research team at Rabobank.
Key Quotes
“Hopes for US tax reform have been mixing with market expectations of a December rate hike by the Fed. That said, news of a possible delay to a cut in US corporation tax disappointed the market towards the end of last week.”
“Speculators also increased their net EUR longs, in contrast to the recent trend. The tone of ECB President Draghi at the October 26 policy meeting was more dovish than the market had expected. However, recent growth data has been strong in the Eurozone.”
“Net GBP positions dropped back into negative ground. The BoE delivered a 25 bps rate hike on November 2. However, the sentiments expressed by the Bank were dovish, limiting scope for GBP gains. UK politics surrounding the May leadership and Brexit talks are also looking uneasy.”
“Net JPY shorts have increased for a third week to their highest level since January 2014. A decline in geopolitical risk, strengthening risk appetite on the back of strong world growth and accommodative policy conditions at the BoJ have supported the use of the JPY as a funding currency. That said, risk appetite edged a lower in the spot market towards the end of last week.”
“CHF positions have been in negative territory for fourteen consecutive week and the size of these positions has grown significantly over the past three weeks. This is consistent with higher levels of risk appetite and a backdrop of solid growth in the Eurozone. The worries around Catalonia have not triggered contagion.”
“CAD longs have slipped for a fourth week as the market looks ahead to a period of steady policy from the BoC. AUD longs have fallen back for a sixth consecutive week. The RBA has indicated there is little chance of a near-term policy hike. Chinese economic data and prices of iron ore and coal remain in focus.”
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 daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.