USD: Stability in the overall position - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that last week’s CFTC data show stability in the overall USD position, with a slight bias to reduce risk-off positions.

Key Quotes

“The dollar’s rally last year was driven by a sharp build-up of longs and the correction in Jan-May helped reverse some of that but positioning data point to a somewhat becalmed market, albeit one which retains a slight dollar long. This is also reflected in the normalisation of FX vols. The market’s default bias in these circumstances is to go yield-hunting and that will probably be true this week.”