Futures market likely driven by commodity prices and Chinese growth

In January, the Japanese yen traded in the positive zone for the first time since October 2012 and continued to advance higher levels, until the BoJ's surprised the market by adopting negative interest rate at the end of January. The USD long levels hovered higher last week for the fifth consecutive week.

Despite the ECB's dovish stance, the level of EUR shorts declined continuously for a third week as traders were reluctant to participate in carry trades. Following BoE Governor Carney's statement not to hike interest rates for the moment, the net sterling short positions advanced higher, recording its strongest level since July 2013. However, downbeat UK economic releases and political uncertainties related to UK EU membership referendum weigh on GBP.

CHF positions moved towards into the red zone. Speculations about the SNB's intervention in the FX market resulted the CHF to decline in the spot market. Net AUD shorts pared some gains but remained at heightened levels, while CAD shorts regained some lost ground.

Chinese economy growth and commodity prices remain to be the principle drivers for the futures markets movements, while crude oil prices remains to be a key focus.