• The USD remains favored against most of the currencies, despite short covering in EUR, JPY and CHF. MXN remains the largest held net long, at $3.3bn, despite a $1.5bn decline w/w. The aggregate long USD position narrowed slightly w/w, however it remains close to 12 month highs at $35.4bn.
• Commodity currencies AUD and CAD fell farther out of favor, as both net short positions widened w/w. The net short CAD position widened by $0.6bn to $3.8bn as a result of a narrowing in longs while shorts were little changed. Meanwhile, AUD sentiment has reached a new 52-week low, with the net short position widening $1.6bn to $5.6bn. The shift in AUD was primarily driven by a narrowing in longs.
Read the full report: FX Research
Scotiabank