CAD Longs Greatest Since February 2013 – Deutsche Bank
Research Team at Deutsche Bank, notes that the IMM data show that
investors significantly reduced their bearish positioning in USD, taking
implied USD shorts as a fraction of open interest to -5% from -8% in
the previous week.
“Bullish sentiment in AUD and JPY declined, but modestly increased in CAD, CHF and NZD. Interestingly, CAD saw short covering for the fifteenth consecutive week and fresh long additions for the fourth consecutive week. This pushed net long positioning in CAD to the highest level since February 2013. Meanwhile, bearish sentiment in MXN increased significantly, but decreased in EUR and GBP.
According to the Traders in Financial Futures report, leveraged funds extended their implied USD shorts, whereas asset managers reduced their implied USD shorts. Leveraged funds added to their net longs in CAD and NZD, while trimming their net shorts in EUR and GBP.
At the same time leveraged funds pared their net longs in AUD, JPY and CHF. On the other hand, asset managers extended their net longs in CAD, AUD and MXN along with their net shorts in JPY, GBP and NZD.
Meanwhile, asset managers marginally pared their net longs in EUR. Notably, net long positioning held by leveraged funds in CAD is highest since mid-February 2013. Elsewhere, net positions held by leveraged funds in MXN flipped to net shorts from net longs.”