The US Dollar (USD) net short positions have increased, driven by a decrease in long positions. The Euro (EUR) net short positions have increased, driven by an increase in short positions. The Pound Sterling (GBP) net long positions have decreased, driven by a decrease in long positions, and the Japanese Yen (JPY) net short positions have decreased, driven by an increase in long positions, Rabobank’s FX analysts Molly Schwartz and Jane Foley note.
“USD net short positions have increased, driven by a decrease in long positions. US CPI inflation registered in line with expectations at 0.2% m/m and 2.6% y/y—an increase from September’s print of 2.4% y/y. According to Bloomberg, the USD has had the strongest returns in the month-to-date in the G10.”
“EUR net short positions have increased, driven by an increase in short positions. EUR/USD has pulled away from Friday’s low in the spot market, currently trading at 1.0484. We are forecasting EUR/USD parity on a 6-month view. EUR has been the worst performing G10 currency against USD month to date, depreciating by 3.28%.”
“GBP net long positions have decreased, driven by a decrease in long positions. GBP has lost its status of the best performing G10 currency year-to-date to the might greenback, having depreciated by 0.17% against USD. JPY net short positions have decreased, driven by an increase in long positions. The market has priced in 14.1p worth of cuts for the December 19th BoJ meeting. JPY continues to be the worst performing G10 currency year-to-date, depreciating 7.86% against USD.”
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