6 Apr 2015
JPY shorts will appeal as soon as Fed restores confidence – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, comments on the CFTC positioning data for the week ending 31st March, 2015, and further adds that with JPY shorts seeing a cutback, fresh impetus might be seen as soon as the Fed restores the confidence in the equity markets.
Key Quotes
“Amid the general lack of news and market movement, the CFTC positioning data for the week ending last Tuesday does warrant mention however. The euro short grew further, which isn't what I would have guessed. So the market went into the payroll data with a new record short Euro position, and yet the top of the current range at 1.1070, still held firm”
“As was the case a week ago, dollar bulls can find less extreme positioning elsewhere, with CAD, AUD, JPY and GBP shorts all reduced.”
“Most striking by far is the cut in the yen short, to the smallest level since October 2012. With US equities on the back foot post-payrolls and Treasury yields lower, you can see why the market should have given up but with Japan heading back towards deflation and the economic rebound stuttering, a fresh yen short will appeal as soon as a dovish Fed restores confidence to the equity market.”
Key Quotes
“Amid the general lack of news and market movement, the CFTC positioning data for the week ending last Tuesday does warrant mention however. The euro short grew further, which isn't what I would have guessed. So the market went into the payroll data with a new record short Euro position, and yet the top of the current range at 1.1070, still held firm”
“As was the case a week ago, dollar bulls can find less extreme positioning elsewhere, with CAD, AUD, JPY and GBP shorts all reduced.”
“Most striking by far is the cut in the yen short, to the smallest level since October 2012. With US equities on the back foot post-payrolls and Treasury yields lower, you can see why the market should have given up but with Japan heading back towards deflation and the economic rebound stuttering, a fresh yen short will appeal as soon as a dovish Fed restores confidence to the equity market.”