Back
21 Dec 2015
USD net long positioning declines ahead of FOMC, suggests IMM Data – Goldman Sachs
FXStreet (Delhi) – Research Team at Goldman Sachs, notes that according to the IMM Data of CFTC Commitment of Traders report (December 15, 2015), the USD net long positioning declined ahead of FOMC.
Key Quotes
“In this week’s CoT report, USD net long positioning dropped $9.3bn to $32.1bn. Reflecting data through Tuesday, this report provides a snapshot ahead of the Fed and BOJ meetings this week. While the Fed raised the funds rate to 0.25-0.50%, ending a seven-year period at 0-0.25%, the BOJ introduced measures to supplement and facilitate the quantitative and qualitative easing (QQE) program. Much of the move in USD net longs this week came from a $4.2bn pullback in JPY net shorts to $2.7bn ahead of the BOJ meeting. This current positioning is light compared to JPY net short positioning in April 2013 and October 2014, which correspond to the dates of BOJ QQE and the BOJ’s October surprise.”
“EUR net shorts slid $1.6bn to $21.8bn. EUR net positioning has decreased $2.4bn in the last two reports since the last ECB meeting, a fairly moderate decline after the positioning increased by $15.4bn in the 6 weeks leading into the monetary policy meeting.”
Key Quotes
“In this week’s CoT report, USD net long positioning dropped $9.3bn to $32.1bn. Reflecting data through Tuesday, this report provides a snapshot ahead of the Fed and BOJ meetings this week. While the Fed raised the funds rate to 0.25-0.50%, ending a seven-year period at 0-0.25%, the BOJ introduced measures to supplement and facilitate the quantitative and qualitative easing (QQE) program. Much of the move in USD net longs this week came from a $4.2bn pullback in JPY net shorts to $2.7bn ahead of the BOJ meeting. This current positioning is light compared to JPY net short positioning in April 2013 and October 2014, which correspond to the dates of BOJ QQE and the BOJ’s October surprise.”
“EUR net shorts slid $1.6bn to $21.8bn. EUR net positioning has decreased $2.4bn in the last two reports since the last ECB meeting, a fairly moderate decline after the positioning increased by $15.4bn in the 6 weeks leading into the monetary policy meeting.”