Reviewing the latest CFTC report, “Having surged the previous week, net JPY short positions dropped back slightly last week,” noted Rabobank Senior FX Strategist Jane Foley.
Key quotes
“The movements in the JPY tend to reflect broad levels of risk aversion, so the fall in shorts should suggest a slight worsening in risk appetite.”
“CHF net shorts edged up modestly, though recent movements have been broadly consolidative. Similar to the JPY, safe haven demand tends to be reflected in the size of CHF positions, though the attraction of the USD has skewed this trend this year.”
“CAD shorts increased further with falling oil prices weighing. AUD shorts edged a little lower but remained essentially consolidative. Domestic data have been supportive but concerns over Chinese growth and the drop in iron ore price could weigh.”
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