CFTC data shows JPY longs in positive ground for the first time since October 2012

CFTC Speculators FX Positioning as at 12 January 2016 shows JPY longs in positive ground for the first time since October 2012 possibly on rising safe haven demand.

A sharp drop was seen in the level of EUR shorts, while the level of USD longs rose for the third consecutive week.

Net sterling shorts positions held steady after gaining ground into the end of last year on the back of disappointing UK economic data. 

CHF positions held in positive territory with safe haven demand likely a factor.  Also supporting was SNB's losing appetite for aggressive policy measures.

An increase was seen in net AUD and CAD shorts increased last week. Chinese growth and the outlook for commodity prices remain principle drivers.