USD IMM longs jumped by close to 50,000 contracts last week, reaching a fresh high of 348,000 contracts, says UBS. It notes that reductions in outstanding longs in GBP and AUD were largely behind the move, suggesting that the market is rather unable or unwilling to price in bad news via the euro alone. UBS says the recent poor run of data from the U.K., which have solidified expectations for additional quantitative easing by the Bank of England, have clearly taken their toll. Meanwhile, hopes of a stimulus package out of China are being kept in check and IMM speculative positions are clearly not counting on help from Beijing to prevent the Reserve Bank of Australia from delivering more cuts.
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