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1 Jun 2015
Leveraged funds increased overall net long US Dollar - ANZ
FXStreet (Bali) - ANZ Research Team reports on the futures positioning data for the week ending 26 May 2015, noting that leveraged funds increased their overall net long USD positioning by USD3.7bn to USD21.5bn, representing the first increase in seven weeks.
Key Quotes
"The increase in USD positioning likely came as Fed Chair Yellen indicated that rate hikes are still expected this year. US data also churned out positive surprises in the week, registering better than expected housing starts, core inflation and durable goods orders."
"Prior to this, there had been a cumulative reduction of USD17.8bn of long USD positioning in six weeks."
"The increase in USD longs was led by JPY (USD3.7bn)."
"This was unsurprising given the price action in USD/JPY which spiked from 120 to 123 between the cut off dates."
"Leveraged funds continued to register net selling in NZD for the fourth consecutive week."
"Net short positioning increased to USD0.4bn from USD0.1bn. Net selling in NZD continued to be prompted by continued dovish sentiment towards the RBNZ."
"The increasing prospect of OCR cuts in the June 11 is expected to keep downward pressure on the NZD in the coming weeks."
"Looking ahead, the direction of the USD remains data dependent. US Q1 GDP was not as bad as expected, though it was revised to -0.7% q/q SAAR from the initial estimate of 0.2%."
"Focus will now turn to the ISM, factory orders and May non-farm payrolls data this week for signs that the US economy is rebounding from a very weak Q1."
Key Quotes
"The increase in USD positioning likely came as Fed Chair Yellen indicated that rate hikes are still expected this year. US data also churned out positive surprises in the week, registering better than expected housing starts, core inflation and durable goods orders."
"Prior to this, there had been a cumulative reduction of USD17.8bn of long USD positioning in six weeks."
"The increase in USD longs was led by JPY (USD3.7bn)."
"This was unsurprising given the price action in USD/JPY which spiked from 120 to 123 between the cut off dates."
"Leveraged funds continued to register net selling in NZD for the fourth consecutive week."
"Net short positioning increased to USD0.4bn from USD0.1bn. Net selling in NZD continued to be prompted by continued dovish sentiment towards the RBNZ."
"The increasing prospect of OCR cuts in the June 11 is expected to keep downward pressure on the NZD in the coming weeks."
"Looking ahead, the direction of the USD remains data dependent. US Q1 GDP was not as bad as expected, though it was revised to -0.7% q/q SAAR from the initial estimate of 0.2%."
"Focus will now turn to the ISM, factory orders and May non-farm payrolls data this week for signs that the US economy is rebounding from a very weak Q1."