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USD longs fall sharply, now the market is almost flat – Deutsche Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Research Team at Deutsche Bank, notes that the IMM data has confirmed that investors sharply reduced their long dollar exposure, taking implied USD longs as a fraction of open interest to 4% from 8% in the previous week.

    Key Quotes

    “Bullish sentiment in JPY, AUD, NZD and CHF improved as investors further extended their net longs. Notably, gross longs in JPY are at all-time high levels. Investors reduced their net shorts in EUR and MXN, while adding to their net shorts in GBP. Interestingly, CAD witnessed short covering for tenth consecutive week and hence, net positioning in CAD flipped to net longs (albeit modestly) from net shorts for the first time since end-May 2015.

    Traders in financial futures data show that both leveraged funds and asset managers significantly pared their implied USD longs. Leveraged funds trimmed their net shorts in EUR, GBP, CAD and MXN, while extending their net longs in AUD. In JPY, leveraged funds modestly cut their net longs, whereas asset managers reduced their net shorts.

    Asset managers marginally increased their net longs in EUR, CAD and MXN, while trimming their net longs in AUD. At the same time asset managers marginally decreased their net shorts in GBP, CHF and NZD. Meanwhile, net positions held by leveraged funds in CHF flipped to net longs (although modestly) from net shorts.”
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