CFTC: longer euro and yen positions - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Analysts at ANZ explained that for the second consecutive week in 2016, leveraged funds reduced their net long USD positions. However, the entire dollar selling occurred in only two currencies – the euro and yen. There was dollar buying against all the other currencies covered by the CFTC data.

    Financial market volatility saw strong safe haven demand for JPY. Net short positions in JPY, which was running as high as USD8.7bn in late December last year, are now close to flat. In the week to 12 January alone, yen net buying amounted to USD2.5bn.

    EUR has also benefited from safe haven demand, with leveraged funds reducing their net short positions by USD1.4bn. CHF, which in the past has benefited from safe haven demand, only saw minimal net buying this time.

    GBP saw the largest net selling, as risk aversion and concerns over ‘Brexit’ saw leveraged funds add to their bearish sterling bets. For the week, leveraged funds increased their net short GBP positions by USD0.8bn to USD3.9bn.

    Commodity currencies experienced net selling, which is unsurprising given the fall in commodity prices (see Figure 13 in PDF). AUD bore the brunt of the selling with its net short positions increasing by USD0.5bn to USD0.9bn. CAD, which had been reaching new recent lows against the USD, only recorded net selling of USD0.1bn to take leveraged fund’s overall net short CAD position to USD3.7bn.

    EM currencies all saw net selling totalling USD0.3bn, with MXN accounting for the bulk of that selling.
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