JPY shorts likely lifted

The shift in speculative positions of other currencies was more limited over the past week for other currencies than the EUR with the exception of the JPY. Net JPY shorts against the USD rose by 30,272 to -33,911, but some of this is likely to have been unwound after the status quo of the BoJ Friday last week.

The small reduction in AUD shorts to -36,350 (+2,060) infers little optimism that the RBA will cut interest rates tomorrow to help offset the rise in variable mortgage rates. 

"No change was pencilled in the Cash Rate Target (2.00%). Net long GBP positions were cut back from 7,537 contracts to 4,134, leaving the bias basically flat for a 7th straight week", says Societe Generale.