USD speculators positions continued to rise, EUR longs bounce higher - Rabobank

According to the IMM net speculators’ positioning as at July 24th, 2018, USD speculators’ positions have continued to rise and have reached their strongest levels since June 2017, notes the research team at Rabobank. 

Key Quotes

“Support for the USD reflects heightened capital outflows from emerging markets and an indication from the FOMC that rates could be increased by a total of 4 times this year.”

EUR longs managed to bounce higher last week ahead of the ECB policy meeting, though they remain close to a quarter of their size in May. In the event ECB President Draghi reiterated the guidance that rates may not be raised until at least summer 2019 and the EUR dropped in the spot market.”

GBP shorts continued to push further into negative territory. Last week shorts reached their highest level since September 2017. Even though better UK economic data have bolstered the market’s confidence of an August 2nd BoE rate rise, UK political uncertainty remains a significant risk factor for the pound.”

Net JPY short positions jumped again last week having risen sharply in mid-June on the heels of the US/N. Korean summit. This suggests that geopolitical risk rather than economic risk has been a bigger driver of flows in the safe-haven JPY, since fear of trade wars does not appear to be triggering demand for the JPY.”

CHF net shorts edged higher again last week. The SNB remains committed to ultra-accommodative policy and this is likely diverting safe haven flow related to the recent sell off in EM currencies into the USD.”

CAD shorts have turned lower. Optimism about NAFTA is supportive but commodity prices remain in view.”

AUD shorts have increased again. Increasing US/China trade tensions have weighed on confidence. The RBA remains cautious on it policy outlook.”


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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: Weak below 0.6700 ahead of Aussie Q4 Wage Price Index

AUD/USD awaits fresh direction near seven days’ low while taking rounds to 0.6690 at the start of Wednesday’s Asian session. Broad risk-off based on coronavirus fears, bearish RBA minutes failed trade-positive nears from China.


USD/JPY: A touch lower than 110.00 amid broad US dollar strength, risk-off

USD/JPY trades mildly positive to 109.90 during the early Asian session, ahead of the Tokyo open, on Wednesday. The risk barometer recently failed to portray the market’s fears from China’s coronavirus amid broad US dollar strength.


Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info