Extent Of Short Positioning

(Reuters) - The dollar held steady versus the yen and euro on Friday, but could face downside risks if U.S. jobs data disappoints and stirs renewed speculation about further monetary easing from the U.S. Federal Reserve. The euro was little changed at $1.3150, having bounced off the previous day's two-week low after European Central Bank chief Mario Draghi gave no strong hints on Thursday about the possibility of more monetary stimulus. After the ECB kept rates steady at 1 percent as expected and an uneventful Spanish bond auction on Thursday, the focus now shifts to U.S. jobs data later on Friday as well as elections in France and Greece on Sunday. The U.S. payrolls report is expected to show a gain of 170,000 in April, a Reuters poll of economists showed. A disappointing result may ...

Sunrise Market Commentary - Fixed Income: Small changes after volatile trading - Core bonds traded volatile due to economic data and bond auctions. The Fed had the final saying. The FOMC statement showed that the Fed was slightly more optimistic on growth and the governors more hawkish in their rate forecasts. However, policy remains unchanged and Bernanke kept the door for more QE open. - Currencies: Fed doesn't help the dollar - On Wednesday, trading in most major currency cross rates was confined to recent ranges. EUR/USD is holding near the recent highs. The Fed kept a soft tone and this was a slightly negative for the dollar. Sterling lost temporary ground as Q1 GDP data showed that the UK has slipped back into recession. However, the EUR/GBP 0.8222 resistance did its job. ...

European shares fell on Wednesday while core government bonds steadied, with investors trimming positions before the end of a first quarter that has seen abundant central bank liquidity and better U.S. economic data buoy a range of assets. Such adjustment was also evident in the currency market, where a broad-based rise in the safe-haven yen was accentuated by Japanese exporters' sales of foreign currency before the March 31 end of Japan's fiscal year. With European data thin on the ground, markets turned their focus across the Atlantic, where comments on Tuesday by Federal Reserve chief Ben Bernanke fuelled investor bets on further U.S. monetary stimulus. "The focus remains on growth indicators," said Lauren Rosborough, currency strategist at Societe Generale. "To the extent that ...

(Reuters) - The yen stayed on the defensive on Monday with the euro reaching a fresh five-month high against the Japanese currency, while the dollar nursed losses following a setback late last week. The euro rose as high as 110.15 yen at one point on trading platform EBS, its highest level since late October. It later pared its gains and was last changing hands at 109.81 yen, down 0.1 percent from late U.S. trade on Friday. In another sign of the yen's recent weakness, the Australian dollar rose to 88.62 yen, its highest level since May 2011. The Australian dollar last stood at 88.37 yen, up 0.1 percent from late U.S. trade on Friday. The yen's status as the currency of choice in funding carry trades was cemented last month after a surprise easing by the Bank of Japan. Additionally, ...

(Reuters) - After a full throttle rally since January, risky assets may be primed for a further, although less stellar, run higher in the coming months, pulling in new money under pressure to perform. Average daily trading volumes in equities, bonds and commodities are down 16 percent this year, reflecting some investors' hesitation at joining the risk party fuelled by a wave of money printing by major central banks. Furthermore, investment statistics show that thin volume rallies tend to outlive high volume stampedes. World stocks, measured by MSCI .MIWD00000PUS, are up 10 percent this year, although the market is merely back at levels seen at the end of last July, before concerns about European sovereign debt and banks combined with fears of another U.S. recession to trigger a major ...

(Reuters) - The euro and growth-linked currencies eased on Monday, undermined by concerns over Greece's progress on completing a debt restructuring deal and poor euro zone data, although their losses would be checked by profit-taking in the dollar. The dollar pulled away from a nine-month high against the yen having risen more than 7 percent in about a month. The euro was also lower against the safe-haven yen. Riskier assets like stocks were hit after Asian powerhouse China lowered its growth target, while euro zone surveys of purchasing managers fell from initial estimates, driving the single currency to a two-week low against the dollar. The euro fell to $1.3160, before recovering to trade at $1.3195, with large investors looking to sell it into a bounce above $1.3200. Bids for the ...

(Reuters) - The euro and growth-linked currencies fell on Monday, undermined by concerns over Greece's progress on completing a huge debt restructuring deal and poor euro zone economic data, although dealers said the dollar was ripe for some profit-taking. The dollar pulled away from a nine-month high against the yen having risen more than 7 percent in about a month. The euro was also lower against the safe-haven yen. Riskier assets like stocks were hit after Asian powerhouse China lowered its growth target, while euro zone surveys of purchasing managers fell from initial estimates, driving the single currency to a two-week low against the dollar. The euro was down 0.25 percent at $1.3168, with large investors looking to sell it into a bounce to around $1.3200. Many were nervous about ...

(Reuters) - The euro held its ground against the dollar on Tuesday as most traders clung to hopes Greece would finally clinch a rescue package despite its politicians postponing a decision to accept painful terms by yet another day. Greek optimism also helped equities and other risk sensitive currencies including the Australian dollar. The Aussie also got a boost when the Reserve Bank of Australia surprisingly kept interest rates steady at 4.25 percent. Failure to secure the 130 billion euro ($170 billion) rescue for Greece would risk a messy debt default and destabilize the entire euro zone, an outcome deemed too extreme to contemplate by many experts. European Union officials say the full package must be agreed with Greece and approved by the euro zone, European Central Bank and ...

The euro rose against the dollar for a second straight session on Wednesday as investors reduced bearish bets after reports about a possible increase in the International Monetary Fund's lending capabilities and a comment from Fitch saying it does not expect Italy to default. The shared currency remained a good distance away from a 17-month low versus the dollar hit last week but many in the market believe its recent gains are tenuous and mostly due to short covering given the extent of the euro's short positioning among the speculative community. "This is just a natural short-covering rally due to a euro positioning that is exceptionally short," said David Watt, senior currency strategist, at RBC Capital Markets in Toronto. "I don't expect this rally to continue and the euro can ...