Speculators Flip Yen Shorts Ahead of BoJ Meeting
Speculators in the currency and commodity markets made significant changes to their positions during the week ending September 8, according to the latest Commitment of Traders update from Saxo. The yen's surge against both the dollar and euro led to a dramatic reversal in positioning, with speculators flipping a sizeable short into a small net long ahead of the Bank of Japan meeting.
The aggregate dollar long against eight IMM futures fell to a 14-week low, driven primarily by the sharp unwind of yen shorts. This was accompanied by a significant reduction in the Canadian dollar's net short position, which dropped by 35% to USD 70,500 contracts.
In commodities, the HG copper net long reached a five-year high ahead of the US tariff-related correction, while soybean positioning climbed to an all-time high. The combined speculative net long in grains and softs remained close to last week's record at 1.36 million contracts.