USD shorts dropped, EUR longs steady - Rabobank

According to IMM net speculators’ positioning as at May 08, 2018, short USD net positions dropped to their lowest level since March following the recent better tone of the greenback in the spot market.

Key Quotes

“In the past few sessions, however, the USD spot has dropped back from its recent highs on the back of softer than expected US CPI inflation data. This impact could be reflected in the next release of CFTC positioning numbers.”

“EUR longs were largely steady, having dropped sharply in the previous two weeks. The lack of hawkish commentary at last month’s ECB meeting and weaker Eurozone economic data has prompted a softer tone for the EUR.”

“Having risen to their strongest levels since July 2014 in April, net GBP longs have since dropped back significantly. In the latest release, net longs were at their lowest level since late February. The drop in net longs mostly reflects the fall in expectations of a May BoE May rate hike, this was confirmed last week. Political uncertainty is also a factor.”

“CHF net shorts dropped sharply again lower last week, returning to levels last seen in 2012.  This is likely related to the calming of tension on the Korean peninsula and hopes for a compromise on US/China trade.”

“CAD shorts dropped back last week. Focus has been on BoC policy although oil prices, Nafta and trade wars also remain in view. AUD shorts increased sharply as the RBA policy meeting signalled no imminent change in policy.”