FX SENTIMENT REPORT March 31, 2017

Sommary: EUR NET SHORT NEARLY NEUTRAL & LONGS AT RECORD
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Data in this report cover up to Tuesday March 28 & were released Friday March 31.
•  EUR sentiment is nearly neutral for the first time in three years, leaving the remaining G4 peer currencies GBP and JPY as the primary shorts contributing to the $16.2bn aggregate USD long (top right p1). CAD, CHF and NZD round out the remaining shorts. AUD is the only currency held net long vs. the USD.
• CAD sentiment has deteriorated for a fourth consecutive week, pushing the net short position to $2.1bn—its most bearish level since early March 2016. The deterioration builds on the previous week’s record swing and details hint to a broader turn with an impressive moderation in longs and a steady build in shorts.
Meanwhile, AUD remains the largest held net long. Its $4.1bn position is pushing toward the $4.6bn multi-year high from April 2016.
• Bearish EUR sentiment has moderated for a third consecutive week, softening the net short position to $1.1bn—its narrowest since May 2014. Details show a gross record long against a relatively extended gross short
• GBP is the largest held net short, at $8.1bn. Longs are relatively muted at the lower end of their multi-year range and shorts are just shy of their record (middle left p2). Roughly one third of the gross shorts were established in the period from mid-Feb to mid-March, leaving them vulnerable to a sustained break in GBP above 1.25.

 

Regards All.
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