IMM Net Speculators’ Positioning - Rabobank

From the IMM Net Speculators’ Positioning as at 27 September 2016, analysts at Rabobank noted that bearish bets against the pound surged again last week having dropped back the previous week. 

Key Quotes:

"Concerns regarding a hard Brexit have since risen further suggesting that GBP is set to remain vulnerable.

EUR net shorts edged lower last week. Net positioning has lacked direction in recent weeks with speculators influenced both by economic data and last month’s indication from ECB President Draghi that the Governing Council had not discussed an extension of QE at the September policy meeting.

USD longs dropped to their lowest level since late June last week. The market remains skeptical about the prospect of a rate hike from the FOMC this year and anticipates only a slow pace of tightening in 2017.

Net JPY longs jumped higher, moving back to their highest level since April. A dovish Federal Reserve and safe haven inflow are both supportive for the yen.

CAD net positions turned negative for the first time since March. Oil prices remain a prime focus but the US election is gaining more attention. The level of AUD longs more than doubled last week. New RBA Governor Lowe is expected to keep policy steady in the coming months."