Money managers were busy adjusting positions during the week ending 12 February according to data provided by the US CFTC. The net result was a reduction in gross dollar short positions by 40 percent as selling mostly hit the eight IMM currency futures tracked in this report apart from JPY. Selling pressure were applied to the AUD following the failure to get through 1.0380 resistance while the GBP position turned net short for the first time since September as bad macro data and M&A flow sent the cable lower and EURGBP higher.
The JPY was bought ahead of the G7 and G20 meetings with the buying primarily contributing to gross buying, not by the reduction of gross short which indicates that the battle of wills is building.
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