Dollar Longs Heavily Pared While Euro Shorts Square ahead of ECB – Deutsche Bank
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.
Key Quotes
“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.”
