This data references the period ending Tuesday, June 13.

EUR/USD

Non-Commercials increased their net long positions in the Euro last week buying a further 5k contracts to take the total position to 79k contracts. The single currency has now been net-bought for eight consecutive weeks, reflecting an acute shift in sentiment on behalf of institutional investors. Consistently strong data, growing hawkish ECB expectations and diminished political risk have all contributed stronger demand for the currency.

Focus this week will be on the second round of the French elections with centrist candidate Macron widely expected to gain the Presidency. Other key events/releases include the EU summit on Thursday as well as flash eurozone PMIs on Friday.

GBP/USD

Non-commercials increased their net short positions in Sterling last week selling a further 3k contracts to take the total position to -40k contracts. Sterling has now been net-sold for three consecutive weeks, reflecting the growing uncertainty around the political leadership in the UK as well as the upcoming Brexit negotiations. Though GBP is likely to remain supported in the near term, the risks of the UK failing to achieve a deal with the EU, have grown considerably

At their recent monetary policy meeting, the Bank of England were seen to have taken a more hawkish shift with three members dissenting and voting for a hike. The latest inflation data showed CPI had jumped to its highest level since 2013 though wage growth remains subdued.

USD/JPY

Non-Commercials reduced their net short positions in the Japanese Yen last week buying 4.5k contracts to take the total position to -50.5k contracts. The Japanese yen has remained under pressure over recent weeks following a hawkish FOMC and unchanged BOJ.  The lack of reference to stimulus removal/exit by the BOJ should keep bulls sidelined for now. Global yields and risk sentiment continue to be the key drivers for now, and USD/JPY rate divergence should see USDJPY supported while still-firm equities should weaken the safe-haven bid.

USD/CHF

Non-Commercials reduced their net short positions in the Swiss Franc last week buying 2k contracts to take the total position to -14.5k contracts. Demand for CHF has been steady over the last month, and the SNB will no doubt be keeping an eye on any excessive strengthening which should see the SNB once again taking to the wires to caution about their “willingness” to act. A surprise outcome in the French elections would likely fuel upside pressure on CHF leading to SNB intervention.

AUD/USD

Non-Commercials increased their net short positions in the Australian Dollar last week selling 1.4k contracts to take the total position to -1.5k contracts. The Aussie has been net sold for two consecutive weeks now following the shift to net-short by institutional investors. Weaker China data, as well as RBA easing concerns, have been weighing on the currency recently.

The Fed’s recent rate hike should take some of the pressure off the bank though many are still forecasting the bank to ease further over the remainder of the year. Despite forecasts of further easing, recent data has printed strongly with the May jobs report confirming the third consecutive month of growth in the labour market.

USD/CAD

Non-Commercials reduced their net short positions in the Canadian Dollar last week buying 6k contracts to take the total position to -89k contracts. This latest adjustment marks the third consecutive week of buying in CAD after short positions recently reached record levels.

At their recent meeting, the BOC took markets by surprise by taking a hawkish shift and abandoning their neutral to dovish stance on the economy, based on recent data. The bank said that the economy’s adjustment to the 2014 oil cut is now complete and its 2015 rate cuts are seen as having been successful. Key data this week will be retail sales on Thursday followed by MAY CPI on Friday.