Dollar Longs Heavily Pared While Euro Shorts Square ahead of ECB – Deutsche Bank
Nicholas Weng, Strategist at Deutsche Bank, suggests that this week we
have seen paring in two of the most popular long trades: USD in DM, and
PLN in EM.
“USD longs were trimmed with the largest weekly positioning change over the year as both leveraged and real money accounts sold the dollar. The high crude betas CAD and NOK were also sold after the Doha meeting failed to reach a consensus on oil production.
Investors have modestly trimmed Euro shorts ahead of ECB meeting. By contrast, SEK longs were fairly aggressively extended ahead of the Riksbank decision. DB strategist Oliver Harvey highlighted the Executive Board were likely to be close to the end of the easing experiment, as financial stability risks begin to rise.”