Originally published by AxiTrader
There were some notable shifts in FX speculative positioning.
As the latest data from the CFTC shows, speculators have reduced their euro long positions from 86k to 62k. The euro has seen quite a rally in the last few months, but the market is worried that the European Central Bank might use verbal intervention if the currency appreciates further, or even delay the shift in monetary policy.
Another large shift was seen in pound positioning. It stood at 10k net short vs. 46k in the previous week. This won´t come as a surprise, as many pound bears were caught by surprise after the hawkish Bank of England meeting.
Yen and Swiss franc positioning remained stable. Net postioning for the yen stood at 51k short vs. 57k short previously. Swiss franc net positioning is steady at 2k short.
Meanwhile, speculators added to their Canadian dollar and Australian dollar long positions. Canadian dollar positioning stands at 59k net long vs. 50k previously. While the Canadian dollar had an impressive rally in the recent months, positioning is still far away from being at extreme levels, suggesting there might be some more room for a continuation of the rally. Meanwhile, Australian dollar long positioning jumped from 63k to 72k.
