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USD longs surged to levels last recorded in April 2013 - Rabobank

FXStreet (Bali) - Rabobank reviews the latest changes in IMM Net Positioning as at 16 September 2014, noting that USD longs have surged to levels last recorded in April 2013.

Key Quotes

USD longs have surged to levels last recorded in April 2013. The FOMC last week suggested that once policy starts to be tightened, the trajectory of rate hikes could be steeper than currently expected. Consequently USD longs could continue to strengthen.

EUR shorts have been reduced. That said, they remain at elevated levels.

JPY net shorts have fallen back further. Earlier this month they were at their highest levels since January.

GBP positions have dropped sharply from a net long to a net short. This is the first time the market has been short of sterling since November last year. The ‘no’ result in the Scottish independence referendum may offer some support.

AUD longs have almost halved as nervousness regarding Chinese growth rises again. CAD longs have dropped again.

CHF shorts edged lower, back to levels last seen in July.

Re-initiate sterling shorts vs. USD - JPMorgan

Paul Meggyesi and Meera Chanda, FX Strategists at JP Mrgan, recommend short positions in GBP/USD.
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Amari signals 2nd tax hike, supportive for BoJ easing - BTMU

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