Speculative traders in IMM currency futures continued to sell dollars ahead of Jackson Hole last Friday. The data covering the week ending August 28 showed an aggregate dollar short position of USD 5 billion with most of the selling occuring against the EUR and to a lesser extent the JPY and CAD.
Last time the aggregate dollar short versus the eight IMM currencies was at this level was almost one year ago and at the time the EURUSD was trading around 1.4000.
The continued buying of the EUR seen in recent weeks have now more than halved the net short position which peaked just three months ago at -214.4k contracts.
AUD longs were cut but given the continued weakness in China and recent collapse in the price of iron ore the currency could see further reduction in long interest.
The CAD was bought for a fifth week as energy prices stays elevated and the recent US economic data have improved.
Click here to read the full report: FX CFTC_090312
Ole Hansen,
SAXO BANK