Speculators sold JPY by the biggest amount in 18 months during the week ending October 23, according to the latest data from the CFTC. The selling was in response to increased speculation that monetary conditions will be eased further at the BOJ meeting tomorrow Tuesday. This resulted in the aggregate short dollar position being reduced by USD 4.2 billion to 10.5 billion, the smallest short position in seven weeks, while CHF position turned net long for first time in a year.
Elsewhere the entrenched EUR short position continues to stabilize as the currency remained rangebound versus the dollar. In the commodity currencies, a small reshuffle was seen into AUD, with the net long positioning rising for the first time in four weeks out of CAD, which saw its fifth week of small long liquidation.
Click here to read the full report: FX CFTC 102912
Ole Hansen,
SAXO BANK