Money managers, speculating in IMM currency futures, bought dollars again during the week ending November 13 according to the latest data from the CFTC. General risk adversity brought on by worries about Greece and the US fiscal cliff were the main reasons for the buying which resulted in the aggregate dollar positioning almost being removed after 12 weeks in negative territory. Six out of eight currencies were sold, especially the Euro while AUD and JPY were bought.
– After 12 weeks with negative positioning the dollar is now almost back to neutral;
– The JPY short was reduced just ahead of one of the biggest drops of the year when political opposition leader Shinzo Abe signalled aggressive monetary easing if elected on December 16.
– The AUD has overtaken CAD again as the most popular currency as the switch between these two commodity currencies continued for a fourth week.
– The MXN has been sold over the last month as investors, who have been flocking to this popular carry trade, have become nervours about the fiscal cliff impact on Mexico with 80 percent of its exports going to the US.
Click here to read the full report: 111912_IMM CFTC
SAXO BANK