Scotiabank FX Sentiment Report

This week’s Scotiabank FX Sentiment Report came on Friday the 12^th which covered the market developments until the 9^th of June.

The bank covered EURO, JPY, USD and CAD in this week’s report.

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Bearish EUR sentiment continues to moderate

As the short covering continues, providing for the bulk of this week’s $3.6bn narrowing in the net short bearish Euro sentiment continues to moderate according to the bank.

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EURO - Non-commercial positioning

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Aggressive JPY bears continued

JPY sellers aggressively continued to add to their short positions, with this week’s $2.6bn build the largest of the past 4 consecutive weeks providing for an aggregate deterioration of $9.5bn. The bank continued that “the rapid build would have left newly established positions especially vulnerable to a turn, amplifying the impact of BoJ Gov. Kuroda’s FX comments.”

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Major bearish sentiment outlook

The bank maintains bearish sentiment towards most of the major currency pairs. Few tradable instruments are exceptions for the bank’s bearish sentiment. These are the Swiss frank, the US dollar and Gold.