Our positioning analysis shows that Hedge Funds and Real Money are close to the max SHORT USD relative to last year i.e. there is much room for long USD positioning to increase. The official sector has been strong buyers of USD recently. This is in contrast to much of their flow this year, where they had been strong sellers of the USD in January, April and May. Officials bought the USD during the last four weeks, particularly against EUR and GBP. Elsewhere, there has been consistent buying of JPY – HFs have been buying JPY in five of the last six weeks, while real money has been buying JPY in the last four weeks. Despite commodity currencies weaker across the board last week, our flows were skewed to better buying of AUD, NZD and CAD, especially from the RM community.