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CFTC: Leveraged funds reduced net long USD - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - ANZ Research Team summarizes the CFTC positioning data for the week ending 19 January 2016, noting that leveraged funds reduced their net long USD positions for the third consecutive week.

    Key Quotes

    "Leveraged funds reduced their net long USD positions for the third consecutive week. However, the net dollar selling was small at USD0.2bn compared to the previous two weeks (see Figure 3 in PDF). As at 19 January, leveraged funds are net long dollars (through futures and options) to the tune of USD23.5bn, which is 15% down from the recent late 2015 peak. They have a further USD4.2bn net long position directly in the ICE US Dollar Index."

    "It was almost a repeat of the previous week in terms of changes in individual currency positioning."

    "EUR and JPY both continued to benefit from safe haven demand. EUR saw net buying of USD1.7bn to reduce its overall net short position to USD12.9bn. Part of this was likely also related to position adjustment ahead of the ECB meeting on 21 January."

    "Leveraged funds are now net long JPY for the first time since October 2012. There was net buying of JPY by USD1.0bn to take overall positioning to a net long of USD0.9bn. CHF has truly lost its mantle as a safe haven currency, recording net selling of USD0.3bn."

    "Sentiment towards GBP remains bearish with sterling recording net selling of USD1.0bn. GBP has gone from the only major currency where leveraged funds had net long positions last year, to having the second biggest net short position currently."

    "Commodity and EM currencies saw net selling. AUD experienced net selling of USD0.9bn to take its overall net short position to USD1.9bn. RUB managed to buck the trend with leveraged funds reducing their net short exposure by a small amount."
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