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USD speculative longs steady after Fed’s 25bp rate hike

Rabobank said OIS pricing still implies investors expect more than three additional Fed hikes by the end of next year.

Reported · Written up by our desk · Major Pairs

FXStreet cited Rabobank’s RaboResearch Global Economics and Markets FX Strategy team, saying USD net long speculative positions were broadly unchanged, with both longs and shorts rising modestly.

The update pointed to the Federal Reserve’s 25 basis point increase to its overnight policy rate on September 16, which matched expectations.

Rabobank also noted that the OIS curve suggests investors still anticipate more than three additional Fed hikes by the end of next year.

FXStreet added that USD strength was supporting the safe-haven bid, while US yields held near multi-year highs amid inflation risks from higher oil prices, and that the USD was weighing on AUD/USD ahead of the RBA on Tuesday.

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