Forex Flash: CAD net longs reduced - Nomura

The Loonie has had the largest change in investors positioning, notes Nomura FX strategists, "following the indication by the BoC that a rate hike is ‘less imminent than previously thought’ and the weaker than expected CPI."

Nomura adds: "Long EUR positions increased again last week, reaching the highest level since July 2011. Our real-time estimate shows that investor have continued to add to their net long position since Tuesday."

"At the same time, investors pared back net long positions in AUD, GBP and CHF, signifying reduced demand for these safe-haven currencies. JPY saw a re-accumulation of shorts position, with net short position remaining at extreme levels" Nomura said.