USD longs edged back, EUR shorts fell back - Rabobank

Jane Foley Senior FX Strategist at Rabobank, lists down the IMM net speculators’ positioning data as at 15 November 2016.

Key Quotes

“The reported level of net USD longs edged back for a second consecutive week despite the surge in the value of the greenback in the spot market since the Presidential election.”

“Bearish bets against the pound fell. The outcome of the November 3 UK High Court ruling that specifies that parliament and not the government has the power to trigger Brexit has supported hopes that a ‘hard’ Brexit could be avoided.”

“EUR shorts also fell back for a second consecutive week having returned to levels last recorded in January at the start of the month. At the October Council meeting, ECB President Draghi signaled that the asset purchases programme could be extended beyond the current March 2017 end date. However, the Dec 4, Italian referendum is the next prime focus for the EUR.”

“Net yen longs have more than halved since the start of November. The recovery in the USD is likely to keep yen longs under pressure. Having increased for the previous five weeks, net CHF shorts lost some ground.”

“CAD net shorts dropped a little ground. Oil prices are in focus. The level of AUD longs grew for an eighth consecutive week following the RBA’s steady policy decision on November 1, but last week’s move was small. Concerns about the impact on China of US protectionism policies are set to keep the AUD nervous.”