IMM Positioning

Net long JPY positions are built further

• The latest IMM data covers the week from September 23 to September 30 and were consequently gathered on the day following last week's rejection of the US bailout plan by Congress, and thereby at a time when there was still uncertainty about the plan.
• Speculative investors reduced their overall positions in the week, as net long USD positions were reduced from USD12.1bn to USD8.1bn. Net short positions in EUR were reduced slightly, but remain the largest short among the G10.
• Net long JPY positions were built further and thus remain the favoured currency,
• Net short CHF positions were extended, despite increased uncertainty on the financial markets. It may seem somewhat surprising that speculative investors preferred to increase their short CHF positions rather than their short EUR positions.
• For the USD-block currencies, net short positions were trimmed marginally.
• On the bond market, speculative investors are now net short in both 2-year and 10-year notes.

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