– There were very few changes this week as the market was likely hesitant to make significant positioning shifts leading into the FOMC, ECB and nonfarm payrolls. MXN remains the largest net long, followed by AUD; while JPY is the largest net short followed by CAD.
– The net CAD position dropped to $6.7bn, with traders scaling back both long and short exposure week-over-week. As CAD moves closer to parity, short covering is likely accelerating the move. The unusual CAD positioning that has it diverging with AUD and held more aggressively short than either EUR or GBP highlights that markets are at risk for a sudden shift.
Click here to read the full report: Market Research
Scotiabank