FXStreet (Edinburgh) – Jane Foley, Senior Currency Strategist at Rabobank, has assessed the last IMM Net positioning.
Key Quotes
“Net USD longs climbed moderately last week ahead of the US July labour report. Confidence in a September rate hike from the Fed appears to be growing, though the Fed’s message that the timing of any rate hike is data dependent suggests there is room for some volatility in positions”.
“EUR shorts lengthened last week to their highest levels since early June. A better tone in many EM currencies suggested that confidence in the carry trade may have picked up last week. However, given Chinese growth concerns and Fed rate fears, we would expect risk appetite to remain contained. Since the EUR has become a funding currency we would expect net shorts to remain well below levels seen earlier in the year”.
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