CFTC: Specs reduce exposure, JPY shorts pared down – BBH

FXStreet (Barcelona) - Reviewing the CFTC Commitments of Traders data for the week ending 31st March, 2015, Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, notes that the overall pattern among specs was to reduce exposures.

Key Quotes

“There was only one significant (10k+) gross position adjustment among speculative accounts, and that was a 16.7k cut in the gross short yen positions. As of March 31, 68.3k speculative gross short yen contracts remain open, which is the smallest since last July. In early December 2014, there were 153k gross short contracts. This has seen the net short position fall sharply. In the last week alone it was nearly halved to 23.9k contracts (from 45.9k).”

“The net speculative Swiss franc position swung back to a small long (0.7k contracts). Throughout the month of March, it has been back and forth, long and short on alternating weeks. Over the past week, it was more a function of shorts covering (3.6k contracts) than new gross longs being established (1.1k contracts).”

“The overall pattern among the speculative participants in the futures market is to reduce exposures. Of the 14 gross positions we track, all but four were reduced. The exception were in the small increases in gross yen (5.3k contracts), Swiss franc (1.1k contracts), Australian dollar (3.7k contracts) and the Mexican peso (8.2k contracts).”

“The speculative net short US 10-year Treasury note futures position fell to 114k contracts form 180k. This was more a function of short covering (52.9k contracts) rather than new speculative longs being established (13.1k contracts).”

“The speculative net long light sweet crude oil futures increased by 19.8k contracts to 226.7k. Speculators reduced gross short positions by 17.4k, leaving 289.3k contracts. The gross long position edged 2.4k contracts higher to 516.0.”

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