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Imm Positioning: Investors Slash Commodity Currencies‏

Published 09/22/2014, 07:26 AM
Updated 05/14/2017, 06:45 AM

The latest IMM data cover the week from 9 to 16 September 2014.

IMM data released last Friday revealed that investors turned more bearish on the EUR as a percentage of open interest, returning non-commercial positioning in the single currency to the 6th percentile (see page 3). The move reflects speculation about hawkish Fed minutes on 17 September. As we know now, Fed did raise its projection for the Fed funds rate (see Fed keeps forward guidance but revises projection higher yet again, 17 September) and positioning has, therefore, likely become even more stretched than what Friday's report suggests. Fundamentally, we still expect theUSD rally to continue and we expect EUR/USD to gradually edge lower as the USDs role as an asset currency increases (see The USD rally set to extend, 15 September).

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