- On the back of a spate of soft US data releases, USD longs softened back to their lowest level for four weeks. That said, from an historical perspective they remain elevated.
- EUR shorts increased moderately. Although they are below their late March peak, they remain at elevated levels as the ECB’s bond buying plan progresses and as the situation between Greece and its creditors remains fractious.
- GBP shorts have dropped from recent peaks. Relatively high UK yields are lending GBP some support. However, the pound is vulnerable to political uncertainty in the approach to the May 7 UK general election.
- Net JPY shorts have fallen sharply as expectations for BoJ easing this month have diminished. Net shorts are at their lowest level since October 2012.
- AUD net shorts have fallen back as the market has questioned the likelihood of another RBA rate cut in May. Net CADs shorts fell last week to levels last seen in early February.
- CHF net positions have held just above zero for four consecutive weeks, though positions are essentially consolidating.
The material has been provided by InstaForex Company – www.instaforex.com