30 January 2017 at 8:32 GMT
Euro-net shorts at four-month low. Photo: Shutterstock
By Ole Hansen
Leveraged funds were net-sellers of the dollar for a third week during the latest reporting week that ended last Tuesday. It covered the period up until Donald Trump’s inauguration and his first days in office.
All eight IMM currency futures were bought against the dollar with longs increasing by 23,000 lots while shorts were reduced by 36,000 lots.
Bearish IMM EUR bets was reduced by 14% to the lowest since September 27, primarily due to short-covering.
Commodity currencies are back in demand with the net position in CAD and AUD both swinging back to a net-long. The loonie has been bought in eight out of the last ten weeks but it was only last week the net turned positive for the first time since September.
— Edited by Martin O'RourkeOle Hansen is Saxo Bank's head of commodities strategy