FXStreet (Barcelona) – Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, offers the Commitment of Traders report for the date ending 30th June, 2015.
Key Quotes
“Bullish USD sentiment has softened modestly, the aggregate USD long position falling back to the lower end of its range since mid- May. Investors are bearish all currencies with the exception of CHF, and short positions in EUR and JPY represent over 80% of the aggregate $27.4bn USD long. Recent changes have been minimal, with investors adding to most shorts while soften-ing bearish positions in GBP and JPY.”
“Negative sentiment toward CAD and AUD has deteriorated fur-ther, the short CAD position widening $0.5bn to $1.9bn—a level last seen in late April. CAD sentiment has deteriorated in four of the past five weeks, driven primarily by a renewed build in gross shorts.”
“Bearish GBP sentiment has softened considerably over the past three weeks, its net short position more than halving to $1.3bn. The multi-month period of short covering in EUR appears to be slowing, as we note a stabilization in the net short EUR position over the past three weeks.”
“JPY remains extremely vulnerable to violent swings in sentiment as we consider the sizeable range from mid-May—the net short position shifting between $2.3bn and $11.7bn. Short covering ap-pears to have slowed, and JPY gross longs have exhibited consider-able volatility over the past three weeks.”
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