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Article / 27 June 2016 at 7:28 GMT

COT: Dollar was back in demand before Brexit vote

Head of Commodity Strategy / Saxo Bank
Denmark
By Ole Hansen

Hedge funds returned as net buyers of dollars ahead of the Brexit vote last Thursday. During the week ending June 21 all but one of the eight IMM currencies tracked in this report were sold.

Speculative IMM currency positioning
 
  • Risk aversion ahead of the vote triggered reductions almost across the board with both long and short positions being reduced.
  • The biggest positive dollar impact came from the surprisingly aggressive selling of sterling as it rallied following the temporary suspension of campaigning.
  • The CAD net-long was almost wiped out in response to renewed oil price weakness.

Speculative IMM currency positioning
 
– Edited by Clare MacCarthy

Ole Hansen is head of commodity strategy at Saxo Bank. His Twitter account was cited by MarketWatch as one that investors should follow in 2016.


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Commitments of Traders: IMM Currency Futures

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