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J.P.Morgan: Modest Short Covering Of USD Positions To Start The Year

FOREX

J.P.Morgan write “demand for USD calls has outpaced puts across most liquid pairs to begin the year, albeit the extent of short covering overall still looks fairly modest in both options and FX futures.”

  • “Topside demand in EUR/CHF and USD/CHF in options remain a theme to start the year.”
  • “Long-AUD positioning could be impeding more substantive gains in spot, including vs NZD.”
  • “GBP was the only currency to not cede positioning to USD in the futures space last week, and overall sterling remains the net-longest currency vs USD in the CFTC data.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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