LIMITED CHANGES IN SENTIMENT; CAD NET SHORT WIDENS
Data in this report cover up to Tuesday April 4 & were released Friday April 7.
• The aggregate long USD position was relatively unchanged in the week ended April 4th, softening a modest $0.3bn w/w to $16.0bn (top right). Position changes were also limited across most of the currencies, with a modest improvement in sentiment toward JPY, GBP, and CHF, and minor deteriorations for EUR, AUD, CAD, and NZD. GBP and JPY remain the largest held net shorts, and AUD is the only currency held net long vs. the USD.
• CAD sentiment has deteriorated for a fifth consecutive week with a modest $0.2bn build in the net short position to $2.3bn—its widest since early March 2016. This week’s details show risk being added to both sides (bottom right p1). Bullish AUD positioning has remained relatively stable around the $4bn level since late February.
• EUR positioning deteriorated modestly with a $0.5bn w/w widening in the net short to $1.5bn. Net positioning remains close to neutral at the narrower end of the three year range. Details show extended gross longs just shy of last week’s record and shorts at the narrowest level since June 2016.
• GBP is the largest held net short, despite a modest $0.4bn w/w narrowing to $7.8bn. Details hint to a paring of risk on both sides, with longs dropping to the lower end of their 4 year range and shorts covering for a third consecutive week (middle left p2). Bearish JPY sentiment has softened considerably with a $4.1bn narrowing in the net short from late December. Details hint to a broad turn with a gradual build in longs and considerable short covering.