Money managers and other speculative traders were net buyers of the dollar against all eight IMM currency futures, apart from NZD, during the week ending February 19. This resulted in these investors now being the least negative on the dollar since November 27. The Mexican peso has now overtaken the AUD as the most preferred currency due to its higher rates and close proximity to the US economic recovery. The JPY net-short position has almost remained unchanged for the last month. The increase in net-shorts last week were primarily triggered by additional selling with holders of gross longs still looking for a correction. The slide in sterling attracted additional selling with the net-short rising rising to the highest in almost a year.
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