FXStreet (Delhi) - Christin Tuxen, Senior Analyst at Danske Bank, notes that the latest IMM data that covers the week from 16 September to 22 September 2015 is indicating that there is a room for JPY downside and CHF upside.
Key Quotes
“Some JPY shorts were unwound last week and, on the whole, yen positioning is close to neutral. This highlights the room for JPY downside should markets accelerate speculation that the Bank of Japan may be forced to deliver more easing following the recent stream of dire news on both the domestic and Chinese economy.”
“In contrast, CHF longs were unwound and non-commercial positioning is now marginally net short the Swissie (neutral territory). We stress that the franc could see support vis-a-vis the single currency if markets become more aggressive on pricing more easing in from the ECB given the SNB’s lack of effective instruments to fight EUR/CHF downside.”
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