Leveraged Funds Reduced Short USD Positions - ANZ

Leveraged Funds Reduced Short USD Positions - ANZ

23 May 2016, 06:55
Roberto Jacobs
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Leveraged Funds Reduced Short USD Positions - ANZ

The ANZ Team shares summarizes the latest positioning data for the week ending 17 May 2016, noting that Leveraged funds continued to be short for the USD for a fourth straight week, although these short positions were reduced by USD0.4bn to take it to USD3.3bn.

Key Quotes

USD has since rebounded further following the release of hawkish FOMC Minutes on 18 May, so net USD shorts could have been trimmed further.

Leveraged accounts continue to reduce their net short positions in the EUR,but increased slightly their short GBP positions.

Net short EUR positions against the USD were reduced for a fourth consecutive week, by USD1bn to USD2.9bn, the smallest shorts in two years. Leveraged funds raised their net short GBP positions following a reduction the previous week by USD0.2bn to USD0.6bn.

Leveraged funds, however, increased their net long JPY positions for the first time in three weeks, by USD0.3bn to USD3.5bn. However, the move higher in USD/JPY post the cut-off date could have seen positions pared back.

As expected, speculative funds continued to reduce their net longs in AUD following the rate cut and inflation downgrade earlier this month. Funds reduced their net long positions by USD0.9bn to USD1.9bn, the third consecutive week of reduction in net longs.

Leveraged accounts also reduced their net long positions in NZD by USD0.2bn to USD0.8bn. Similarly, funds trimmed reduced their net CAD longs by USD0.1bn to USD1bn amid a firmer USD (see Figure 9 in PDF).

On EM currencies, leveraged funds remained long in the BRL (USD0.5bn) and RUB (USD0.2bn) with little changes in net positioning. However, they remained net short in the MXN for a second consecutive week with a net short of USD0.8bn


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