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16 Sep 2013
Flash: CTFC shows EUR longs cut back - Danske Bank
FXstreet.com (Barcelona) - Danske Bank analysts note that weekly positioning data from the CFTC revealed another cutback in EUR longs as investors turned to USD, GBP and a range of the commodity currencies.
Key Quotes
“This continuous addition to USD longs despite the weak payrolls report suggests that speculators are overall positioned for Fed tapering to be announced this week.”
“Focus is likely now to turn to the pace of tapering and whether the current (in our view somewhat aggressive) pricing of eventual Fed hikes is warranted.”
“This could induce a temporary period of USD weakness, not least after Larry Summers (perceived by some as potentially less dovish than now-favourite Yellen) has withdrawn from the Fed chairman race.”
Key Quotes
“This continuous addition to USD longs despite the weak payrolls report suggests that speculators are overall positioned for Fed tapering to be announced this week.”
“Focus is likely now to turn to the pace of tapering and whether the current (in our view somewhat aggressive) pricing of eventual Fed hikes is warranted.”
“This could induce a temporary period of USD weakness, not least after Larry Summers (perceived by some as potentially less dovish than now-favourite Yellen) has withdrawn from the Fed chairman race.”