Rabobank - "IMM Net Positioning as at 27 August 2013:
- EUR net longs continued to rise, edging up to a high since May 2011.
- Yet again USD longs fell slightly but they still remain in positive territory. We expect our structurally bullish USD view to be reflected by market positioning going forward.
- JPY shorts increased by more than the prior week’s reduction. USD/JPY continues to flirt with the 100 handle but has not stood north of there since late July.
- Sterling shorts were little changed. Event risk remains elevated following Bank of England Chairman Carney’s speech last week and the BoE rate decision on Thursday.
- Swiss franc positioning remains almost flat.
- CAD shorts more than doubled following weeks of relatively stable prints. The Bank of Canada rate decision is due on Wednesday.
- AUD shorts continued to increase and now stand close to their most stretched level in the past year. Pressure on AUD/USD remains to the downside but we are of the view that room for further selling is becoming somewhat limited.