6 Apr 2015
Leveraged funds decreased overall net long USD positioning - ANZ
FXStreet (Bali) - The positioning data for the week ending 31 Mar 2015 shows leveraged funds decreased their overall net long USD positioning for the first time in 3 weeks, by USD5.2bn to USD35.2bn, notes the FX Research Team at ANZ.
Key Quotes
"Leveraged funds decreased their overall net long USD positioning for the first time in 3 weeks, by USD5.2bn to USD35.2bn. The reduction in positioning was the highest since end-January."
"This came even as the week saw a slight increase in the DXY. Broadly, the changes in positioning for leveraged funds in the week appear to contradict the changes in price levels, suggesting that leveraged funds have been taking advantage of a rising DXY to reduce their USD exposure ahead of the US non-farm payrolls release."
"After the cut-off date, it is likely that leveraged funds continued to reduce their long USD positioning following the release of the weak payrolls data."
"The reduction in USD longs was across the board, led by net buying of the EUR and JPY."
"Net short positioning in the EUR reduced to USD22.0bn from USD23.9 previously. This was despite EUR/USD declining from 1.09 to 1.07 in the week."
"Net short positioning in JPY also reduced to USD3.9bn from USD5.5bn previously even as USD/JPY registered an increase in the week."
"It is notable that AUD was the only currency that saw an increase in short positions."
"This is likely due to sentiment towards the AUD being weighed down by lower iron ore prices and prospects for another RBA rate cut in April."
"Among the currencies that saw net buying, GBP stood out as the currency that registered the smallest amount of buying at USD0.1bn."
"Uncertainties surrounding the outcome of the May elections are likely behind the reluctance of leveraged funds to reduce their net short positions more substantially."
Key Quotes
"Leveraged funds decreased their overall net long USD positioning for the first time in 3 weeks, by USD5.2bn to USD35.2bn. The reduction in positioning was the highest since end-January."
"This came even as the week saw a slight increase in the DXY. Broadly, the changes in positioning for leveraged funds in the week appear to contradict the changes in price levels, suggesting that leveraged funds have been taking advantage of a rising DXY to reduce their USD exposure ahead of the US non-farm payrolls release."
"After the cut-off date, it is likely that leveraged funds continued to reduce their long USD positioning following the release of the weak payrolls data."
"The reduction in USD longs was across the board, led by net buying of the EUR and JPY."
"Net short positioning in the EUR reduced to USD22.0bn from USD23.9 previously. This was despite EUR/USD declining from 1.09 to 1.07 in the week."
"Net short positioning in JPY also reduced to USD3.9bn from USD5.5bn previously even as USD/JPY registered an increase in the week."
"It is notable that AUD was the only currency that saw an increase in short positions."
"This is likely due to sentiment towards the AUD being weighed down by lower iron ore prices and prospects for another RBA rate cut in April."
"Among the currencies that saw net buying, GBP stood out as the currency that registered the smallest amount of buying at USD0.1bn."
"Uncertainties surrounding the outcome of the May elections are likely behind the reluctance of leveraged funds to reduce their net short positions more substantially."