Yen Bears Flip, Dollar Bulls Face Hurdles

Futures traders have been cutting their exposure to the US dollar in recent weeks, but the greenback remains net long heading into a major central bank week.

The bigger shift came in Japanese yen positioning, where large speculators finally flipped net long for the first time since February. This change may be due to renewed bets for a hawkish Bank of Japan and high levels of intervention from the MOF.

In contrast, bearish Canadian dollar exposure continued to ease despite renewed US-Canada trade tensions. Traders have trimmed their net-short position to 70.5k contracts, suggesting bearish CAD positioning is being unwound.