Money managers continued to aggressively sell the JPY during the week ending November 27, despite Japan’s Liberal Democratic Party leader Abe sounding less aggressive on the Bank of Japan’s future monetary policy. They sold USD 4.3 billion worth of JPY while buying almost the same amount of EUR, which saw JPY become the most sold currency among the eight IMM currency futures tracked in this report. The net-short JPY position, now at 79.5k contracts, is at the highest level since July 2007 but is still much less than the peak of 188k ealier that same year when investors enjoyed healthy carry trades.
Despite the increased selling of the JPY the aggregate dollar long position more than halved as a healthy amount of risk appetite returned which triggered buying in all the other seven IMM currency futures, especially EUR, AUD, CHF and GBP.
Click here to read the full report: FX CFTC_120312
SAXO BANK