According to the IMM net speculators’ positioning as at September 26, 2017, speculators’ net short USD positions increased to their highest level since April 2014 despite the hawkish signals from the Fed, notes the analysis team at Rabobank.
Key Quotes
“The market remains unconvinced about the ability of the GOP to push through tax reform this year.”
“For the first time since November 2015, net GBP positions have clawed their way back into positive ground. Hawkish talk from the BoE appears to be have the desired effect in lifting the pound. However, political uncertainty and signs of slowing growth in the UK continue to cloud the outlook.”
“In spite of the result of the German election a week ago which weakened Chancellor Merkel’s grip, net EUR longs increased indicating that the bout of profit-taking the previous week was not the start of a new trend. That said, EUR longs remain below their early September high.”
“Net JPY short positions climbed further last week suggesting that the market’s desire to hold JPY for safe haven reasons is dwindling. Strong levels of world growth are attracting funds into higher yielding destinations. That said, shorts are still well below the recent highs seen in July.”
“CHF positions remained in negative territory for an eighth consecutive week. The modest increase in short positions last week appears consistent with the increase in EUR longs last week.”
“CAD longs rose again, though a lack of hawkishness in comments from BoC Governor Poloz later in the week is likely to lead to a reduction of longs in the next set of data. AUD longs increased further. 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
AUD/USD falls toward 0.6400 amid mixed markets, light trading
AUD/USD is falling back toward 0.6400 in the Asian session on Monday, The pair failed to find any inspiration from the mostly upbeat Chinese business PMIs. A fresh uptick in the US Treasury bond yields and a mixed mood are weighing on the Aussie amid a China holiday.
USD/JPY hits fresh 11-month highs, approaches key 150.00 level
USD/JPY is extending gains toward 150.00, flirting with fresh 11-month highs in Asian trading on Monday. The pair is supported by the renewed upswing in the US Treasury bond yields and dovish BoJ commentary. However, Japanese FX intervention risks mount.
Gold moves below $1,850 on market caution, Fed Powell speech eyed
Gold extends its losing streak that began on September 25, trading lower around $1,840 per troy ounce during the Asian session on Monday. China’s Manufacturing PMI data was released over the weekend, which showed improvement into positive territory but failed to provide any support for the XAU/USD price.
DOT confirms trend reversal, eyes retest of $5 after reclaiming key hurdle
Polkadot price seems to be ending its downtrend after shedding 92.91% in the last two years from its all-time high of $55.09. In the last three days, DOT has inflated by 3.3%, breaching a declining trendline and confirming the potential start of an uptrend.
Week ahead – Dollar shines ahead of Nonfarm Payrolls
Dollar cruises higher, nonfarm payrolls on Friday will be crucial for this rally. Early indicators point to another solid month for the US labor market. Central bank decisions in Australia and New Zealand will also be in focus.