USD longs edged lower, EUR shorts dropped - Rabobank

According to IMM net speculators’ positioning as at May 14, 2019, USD longs edged lower but they have remained essentially consolidative since the middle of March, notes the research team at Rabobank.  

Key Quotes

“Having dropped lower in the November/December period in response to a more dovish outlook for the Fed, USD longs then consolidated for a lengthy period. Another leg lower occurred in mid-March. Better US economic data may support the USD in the next set of data.”

“Short EUR positions dropped lower last week breaking the recent trend. Better than expected Q1 Eurozone growth data may have offered some support.”

“The level of JPY shorts dropped sharply last week as tension in the market regarding US/China trade talks and Iran continued to lurch higher.”

“Net short GBP positions dropped back on hopes for a breakthrough in cross party Brexit talks remain.”
“CHF net shorts remained essentially consolidative. They remain at relatively elevated levels considering the rise of risk aversion in the market.”

“CAD net shorts edged higher, breaking the recent trend.”

“AUD net shorts increased again ahead of the election and on speculation of a potential June RBA rate cut.”