CFTC report shows CHF and JPY positions back into positive territory

Safe haven demand is seen as the likely factor behind JPY and CHF positions move back into positive territory. CFTC Commitment of Traders Report as at 05 January 2016 showed that JPY positions moved back into positive ground for the first time since October 2012. Expectations that the SNB may be losing its appetite for aggressive policy measures supported CHF longs.

The level of USD longs recovered some ground last week, while net sterling shorts positions edged a little lower having recently gained ground into the end of last year on the back of disappointing UK economic data. 

Net AUD shorts dropped a little further last week, though Chinese growth and currency risks have been weighing on the spot rate. CAD shorts held steady, the outlook for crude oil prices remains key.