15 August 2016 at 9:05 GMT
- Big story remains sterling where speculators expand record short
- Funds were neutral NZD ahead of the RBNZ Aug 10 rate move
- Demand for yen remained strong last week
By Ole Hansen
Hedge funds reduced bullish dollar bets for the first time in six weeks. During the week ending August 9 the Japanese yen remained in demand while the euro, the biggest short, was bought for the first time in eight weeks while bearish GBP bets hit new record.
Funds were neutral NZD ahead of the Reserve Bank of New Zealand rate move on Aug 10. However, the rise in both gross long and short positions ensured continued volatility.
The big story is still sterling where speculators continue to add to an already record short position in IMM GBP. Last week the sixth consecutive extension of bearish bets occurred before and after the Bank of England rate cut on August 4.
– Edited by Clare MacCarthy
Ole Hansen is head of commodity strategy at Saxo Bank