USD stands strong amid increasing net long positions – Rabobank
|The US Dollar (USD) and the Pound Sterling (GBP) gain momentum while the Euro (EUR) and the Japanese Yen (JPY) lose track, strategists at Rabobank note.
US shows the best performance in the FX
“USD net long positions have increased for five consecutive weeks, driven by a decrease in short positions. Labor data came in hot this week with higher-than-expected nonfarm payrolls registering 272 thousand new jobs added to the US economy in May. Investors had priced in a slim-to-none likelihood of a June rate cut going into the June 12th FOMC meeting.”
“EUR net long positions have decreased, driven by an increase in short positions. The ECB released its decision to cut rates 25bps at the June 6th meeting. The market is positioned for a rate pause in July. GBP net long positions increased for the third consecutive week, driven by an increase in long positions. Investors are positioned for a no-change decision from the Bank of England at the June 20th meeting.”
“JPY net short positions have increased, driven by decrease in long positions. PPI registered higher than expected at 0.7% m/m for May versus expectations of 0.5% m/m. Investors were positioned for a no-change decision from the BoJ going into the June 14th meeting.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.