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30 Mar 2015
Specs increased overall net long USD positioning - ANZ
FXStreet (Bali) - ANZ FX Strategy Team reviews the latest positioning data for the week ending 24 Mar 2015, noting that leveraged funds increased their overall net long USD positioning.
Key Quotes
Leveraged funds increased their overall net long USD positioning for a second consecutive week, by USD4.5bn to USD40.4bn, the highest since mid-January (see Figure 3 in PDF).
The increase in USD longs was again led by net selling of the EUR, for a second consecutive week (see Figure 5 in PDF). Net short positioning in the EUR reached a new high of USD23.9bn, up USD3.3bn from USD20.6bn previously. This was despite a rebound of the EUR (from a low of 1.0458 on 16 March to a high of 1.1043 on 19 March) in the past two CFTC reporting periods.
Apart from the EUR, leveraged accounts also increased their net shorts in the GBP, by USD0.4bn to USD2.4bn, the highest in six weeks (see Figure 7 in PDF). BoE minutes released on 18 March, which said that currency strength could dampen inflation further, were seen as dovish.
Similarly, leveraged funds rebuilt their net shorts in the CHF, back to USD0.9bn after flattening their positions in the previous week (see Figure 8 in PDF).
In contrast to the EUR, GBP and CHF, leveraged funds trimmed their net shorts in the JPY, by USD0.3bn to USD5.5bn (see Figure 6 in PDF). This likely reflected the start of safe haven demand for the JPY on rising tension in Yemen.
On commodity currencies, leveraged accounts rebuilt to some extent their net shorts in the AUD to USD3.3bn from USD2.7bn after trimming the positions in the previous week (see Figure 10 in PDF). Leveraged accounts kept their net shorts in both the CAD (see Figure 9 in PDF) and the NZD (see Figure 11 in PDF) broadly unchanged, at USD3.3bn and USD0.1bn respectively.
Key Quotes
Leveraged funds increased their overall net long USD positioning for a second consecutive week, by USD4.5bn to USD40.4bn, the highest since mid-January (see Figure 3 in PDF).
The increase in USD longs was again led by net selling of the EUR, for a second consecutive week (see Figure 5 in PDF). Net short positioning in the EUR reached a new high of USD23.9bn, up USD3.3bn from USD20.6bn previously. This was despite a rebound of the EUR (from a low of 1.0458 on 16 March to a high of 1.1043 on 19 March) in the past two CFTC reporting periods.
Apart from the EUR, leveraged accounts also increased their net shorts in the GBP, by USD0.4bn to USD2.4bn, the highest in six weeks (see Figure 7 in PDF). BoE minutes released on 18 March, which said that currency strength could dampen inflation further, were seen as dovish.
Similarly, leveraged funds rebuilt their net shorts in the CHF, back to USD0.9bn after flattening their positions in the previous week (see Figure 8 in PDF).
In contrast to the EUR, GBP and CHF, leveraged funds trimmed their net shorts in the JPY, by USD0.3bn to USD5.5bn (see Figure 6 in PDF). This likely reflected the start of safe haven demand for the JPY on rising tension in Yemen.
On commodity currencies, leveraged accounts rebuilt to some extent their net shorts in the AUD to USD3.3bn from USD2.7bn after trimming the positions in the previous week (see Figure 10 in PDF). Leveraged accounts kept their net shorts in both the CAD (see Figure 9 in PDF) and the NZD (see Figure 11 in PDF) broadly unchanged, at USD3.3bn and USD0.1bn respectively.