Leveraged funds turned net long in the USD - ANZ

Analysts at ANZ noted that leveraged funds turned net long in the USD in the week ended 24 May, the first time in five weeks. 

Key Quotes:

"During the week, they bought a net USD5.3bn of the greenback, turning bullish on the USD after the release of FOMC Minutes on 18 May.

Subsequent Fed speak on a likely interest rate hike in the near term (including Chair Yellen’s speech on 27 May) could have seen leveraged accounts extending their long USD positions further.

 Net USD buying was broad-based, with the main exception of the GBP where leveraged funds continued to pare back on their short GBP positions against the USD by a further USD0.4bn to USD0.2bn, the smallest GBP shorts since mid-December. Opinion polls have shown a growing chance that the UK will stay in the EU in the 23 June referendum.

 Leveraged accounts raised their net shorts in the EUR by USD3.6bn to USD6.5bn, the most EUR shorts in five weeks. They also bought back some USD, reducing their net JPY longs by USD0.8bn to USD2.7bn, the smallest JPY longs since early January.

Leveraged funds pared back on their net longs in commodity currencies across the board, but most notably in the AUD, by USD1bn to take net AUD longs to USD0.9bn, the lowest in eleven weeks. They scaled back in their net longs in the NZD and CAD by USD01.bn to USD0.6bn and USD0.9bn respectively.

 On EM currencies, leveraged funds raised their net shorts in the MXN by a further USD0.2bn to USD1bn, while staying net long in the BRL and RUB, with little changes in positioning."