Ahead of Friday’s dollar rally when the euro dropped below €1.10, speculators had continued to sell the Greenback. In the week to August 27 the gross dollar long against ten IMM currency futures was reduced to a 14-months low at $10.6 billion with buying of JPY, GBP and not least CHF being the main contributors.
The 33,600 lots long in JPY was the most bullish since November 2016 while net-short bets on the Swiss franc fell to 3,800 lots, the lowest since October 2017. The net-short in Sterling was reduced for a third week before PM Johnson’s decision to suspend Parliament for five weeks helped send the price lower again.