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USD bulls are concentrated in EUR and JPY – Scotiabank

FXStreet (Barcelona) - The Scotiabank Research Team, in their FX Sentiment report, note that the positive sentiment around USD is still strong as long USD positions climbed to $48bn (as on Nov 18).

Key Quotes

“The net long USD position continued to build this week, climbing to $48bn. All currencies are held net short against the USD; however this is highly concentrated, with the EUR and JPY net short positions accounting for $36bn or 76% of the total.”

“The net shorts in CAD and AUD, at -$2bn and -$3bn respectively, have stabilized over the last several weeks. For AUD, the paring back in risk, with a narrowing in both the gross long and shorts, suggests some indecision among market participants.”

“Bearish sentiment toward GBP is gaining momentum, having deteriorated for 7 consecutive weeks, with an accelerated build over the past three. The $2.2bn net short is now at its widest level in 14 months, though still well off the $7.5bn record net short from mid-2013.”

“The building net short JPY position, now at $10bn, is likely to continue to build and highlights a renewed desire to short JPY.”

Data in this report cover up to Tuesday Nov 18 & were released Friday Nov 21.

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