Sentiment appears to be building over the domestic stories ra-ther than a broader USD move driven by talk of tapering. The data highlight this well with notably mixed positioning against the USD, as CAD, AUD and JPY are held net short (and close to their year-to-date extreme positions); while EUR, GBP, CHF, MXN and NZD are held net long. The most obvious theme is a preference for the Eu-ropean currencies over the growth currencies.
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Scotiabank