USD longs pushed higher, EUR shorts surge – Rabobank

According to IMM net speculators' FX positioning, the level of JPY shorts dropped again last week – though not quite back to the lows registered in early July.

Key Quotes

“USD longs pushed higher for a fifth consecutive week having dropped in June to their lowest level since July 2018.”

“Net EUR short positions surged last week back to levels held in late June. The market is turning its attention to the prospect of policy easing from the ECB in the coming months.”

“Net short GBP positions increased for an eleventh consecutive week on fears about a no deal Brexit and a weakening UK economic backdrop.”

“CHF net shorts edged higher last week, though levels are still much lower than the year’s average.”

“CAD net long positions dropped sharply last week. Commodities currency are vulnerable to concerns about world growth.”

“AUD net shorts increased. The AUD’s role as a proxy for confidence in China suggests scope for additional pressure in the next set of data.”