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EUR faces first bout of short-covering - Scotis Bank

XStreet (Bali) - Scotia Bank Strategists review the latest positioning in the futures market up to Tuesday Nov. 11, noting that the bullish USD sentiment stabilized at $45bn.

Key Quotes

All currencies are held net short against the USD; however the only posions of significant size are EUR and JPY, followed by AUD.   

For the first me in several weeks traders took profits on shor EUR positions; driving the net posion back to ‐26bn. The shift warns of a slowing in bearish EUR momentum, suggesng EUR will need a fresh catalyst to push it through its recent lows. 

Traders are bearish GBP, however the net short of ‐$1.3bn,  leaves ample room to be built out as the fundamental outlook has deteriorated. This warns of a potenal build in downward GBP  momentum.   

CAD traders added to risk, adding to both gross long and short positions, but favouring the short side. The net short posion is  now at -1.2bn, suggesng a preference to be short CAD.   

Traders added to already short JPY posions, driving the net po‐ sion to $9bn, well within its recent range. 

AUD traders made no changes this week; retaining a relavely  large net short of ‐$3.3bn; while NZD traders are neutral.

New Zealand Retail Sales (QoQ) came in at 1.5%, above forecasts (0.85%) in 3Q

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