EUR positioning stubbornly flat, JPY keeps falling – ING

According to Francesco Pesole, FX strategist at ING, the recent outperformance of the US dollar across the board is becoming increasingly evident in the most recent CFTC FX positioning data.

Key Quotes

“In the week 6-12 November, speculative investors kept adding short positions in both low-yielders (Japanese yen and Swiss franc) and pro-cyclical currencies (Canadian and Australian dollars) - despite the broadly supported risk sentiment.”

“The euro showed some particular resistance to the strong dollar story, with EUR/USD net positioning staying stubbornly flat around -10% (of open interest), in line with its five-year average.”

“Similarly, positioning in the British pound remained unchanged, with increasingly solid expectations for a market-friendly Tory win building some resistance to more GBP selling.”

“The yen continues to face steady selling pressure: in two months, net positioning moved from +20% to -20% of open interest, as JPY appears to be bearing the brunt of the latest risk-on shift.”