Net JPY shorts remain below their November highs - Rabobank

"Net JPY shorts have increased moderately but remain below their November highs," Rabobank analysts note in a report in which they assess the latest CFTC data.

Key quotes

The BoJ reaffirmed its commitment to QQE in December, though speculation remains as to whether the BoJ will signal it wants to fine tune its policy in 2018.

CHF positions have been in negative territory for twenty-one consecutive weeks. Although net shorts have dropped sharply from their November highs, they remain at relatively buoyant levels. This is consistent with higher levels of risk appetite and a backdrop of solid growth in the Eurozone.

CAD longs more than halved in the final week of the year, to their lowest levels since July. In the spot market, the CAD has been knocked around by speculation regarding BoC interest rate policy. Oil prices have failed to offer much influence recently.

Having dropped into negative ground in mid-December, AUD longs consolidated in the final week of the year. The AUD remains well supported on the spot market. The strength of domestic jobs data has reignited speculation that the RBA could be persuaded to bring forward an interest rate hike.