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Forex Flash: Fourfold COT Speculative Positioning changes - BBH

FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes has taken a look at Friday´s CTFC COT report.

He begins by noting that the adjustment to positions were largely fourfold, with traders adding to short Euro, covering short Yen, reducing Sterling exposure and buying more Peso´s. Further, he adds that ahead of the BOJ meeting this week, speculators were reducing short yen positions and the gross shorts peaked in mid-March near 145k and have fallen 20k over the past two reporting periods. He writes, “Some of yen's sell-off following the announcement of "qualitative and quantitative easing" appears to be the re-establishment of these shorts and the re-establishment of short yen positions (directly or as hedges).” After the Yen, he sees that the Euro had the largest gross short position, which is nearly as large. However, in the next reporting period, Chandler feels that we are likely to see a decrease in euro shorts and an increase in yen shorts. Finally, he notes that the gross long Mexican peso position is larger than the gross longs of the euro, yen, sterling, Swiss franc, and Canadian dollar put together. He writes, “It is crowded but the carry trade against the yen may hold off the corrective forces.”

Forex: USD/JPY testing the 99.00 level

The USD/JPY has streamed ahead Monday, building on last week’s steadfast performance, which came on the back end of a BoJ policy overhaul. In other notable moves, the cross summited the 99.00 level (99.01 session high) for the first time since 2009. At the time of writing, the pair is trading at 98.92/93, having jumped +0.69% above its opening.
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Forex Flash: Fourfold COT Speculative Positioning changes - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman has taken a look at Friday´s CTFC COT report.
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