A couple of weeks back, the yen longs rose to their highest levels since February 2012, however, they dropped back to their mid- January levels, after the BoJ surprised the market with its rate cut. The USD long levels hovered higher last week for the sixth week in a row.

Despite the ECB's dovish stance, the level of EUR shorts declined in the previous week as traders were reluctant to participate in carry trades. Sterling net short positions declined moderately; however, recently they rose to their strongest level since July 2013, likely driven by BoE Governor Carney's dovish comments about rate hike. Further, political uncertainties related to UK EU membership referendum weigh on GBP.

In recent weeks, speculations about the SNB's intervention in the FX market resulted the CHF to decline in the spot market. Net AUD shorts pared recent gains, while CAD shorts declined lower.

Chinese economy growth and commodity prices remain to be the main drivers, with main focus on crude oil prices.