IMM Report: USD Shorts Stabilizing, EUR Longs Cut Sharply, AUD Bulls Stomp

Scotiabank FX Strategy Research comments on the latest IMM report (covering up to Tuesday Sep 19 and were released Friday Sep 22).

Overall, ScotiaFX notes that the steady increase in the aggregate bearish bet on the USD seen over the past month continued in the week through Tuesday but the increase was fractional and reflected some big swings in positioning in the individual currencies.

"Overall, the aggregate USD short amounted to USD15.84bn this week, from USD15.77bn last week. The overall bearish bet on the USD remains the largest since 2013," ScotiaFX adds.

In particular, ScotiaFX notes that net EUR longs were cut aggressively, falling by around a quarter to USD9.4bn.

"Gross EUR longs were stable in the week but speculative accounts took advantage of the EUR’s approach to the 1.20 point to increase gross shorts," ScotiaFX notes. 

Finally, ScotiaFX notes that net AUD longs were boosted by USD754mn to the highest since early 2013.

Source: Scotiabank Research