USD Longs Fall Sharply, Now the Market is Almost Flat – Deutsche Bank
Research Team at Deutsche Bank, notes that the IMM data has confirmed
that investors sharply reduced their long dollar exposure, taking
implied USD longs as a fraction of open interest to 4% from 8% in the
previous week.
Key Quotes
“Bullish
sentiment in JPY, AUD, NZD and CHF improved as investors further
extended their net longs. Notably, gross longs in JPY are at all-time
high levels. Investors reduced their net shorts in EUR and MXN, while
adding to their net shorts in GBP. Interestingly, CAD witnessed short
covering for tenth consecutive week and hence, net positioning in CAD
flipped to net longs (albeit modestly) from net shorts for the first
time since end-May 2015.
Traders in financial futures data show
that both leveraged funds and asset managers significantly pared their
implied USD longs. Leveraged funds trimmed their net shorts in EUR, GBP,
CAD and MXN, while extending their net longs in AUD. In JPY, leveraged
funds modestly cut their net longs, whereas asset managers reduced their
net shorts.
Asset managers marginally increased their net longs
in EUR, CAD and MXN, while trimming their net longs in AUD. At the same
time asset managers marginally decreased their net shorts in GBP, CHF
and NZD. Meanwhile, net positions held by leveraged funds in CHF flipped
to net longs (although modestly) from net shorts.”
(Market News Provided by FXstreet)
