Fed hike skeptics lowered long dollar positions – Rabobank

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank noted that the level of USD longs continued to creep lower into the end of the year indicating some skepticism about the pace of Fed rate hikes in 2016.

Key Quotes:

“Having dropped sharply at the start of December, the level of EUR shorts stabilized in the middle of the month albeit it at still heightened levels.

Net sterling shorts positions continued to gain ground into the end of last year on the back of disappointing UK economic data. Political uncertainty could be a negative GBP factor in 2016.

By contrast JPY shorts lost ground, almost halving in the final week of the year. The yen has seen some benefit recently from safe haven demand.

CHF positions held in positive territory. The SNB held policy steady at last month’s policy meeting and commented that unconventional policy measures have side effects. This suggested that the SNB may be losing its appetite for aggressive policy measures.

Net AUD shorts dropped in the final reading of the year having leapt higher the previous week. The RBA remains in focus as do commodity prices. CAD shorts ticked higher again, the outlook for …read more

Source:: FX Street