CFTC: USD - still unwinding - Rabobank

The Research Team at Rabobank offers a brief analysis on the IMM Net Speculators’ Positioning as at 31 January, 2017.

Key Points:

“Net USD longs have fallen even lower and are back to the lowest level since October 2016. This indicates that the reflation enthusiasm which followed the US election has been reversed. That said, USD longs are still well above the levels held last summer suggesting that there is still a lot of good news priced-in.”

“The unwinding of bearish sentiment in the EUR stepped up a pace last week with short positions now at just a third of the high achieved at the start of November last year. Since the start of 2017 stronger than expected German and Eurozone inflation data has re-opened the debate about the appropriateness of easy ECB policy settings. While European political concerns had also ebbed, the scandal involving French Presidential candidate Fillon could revitalise political risk for the EUR.”