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23 Feb 2014
Flash: Modest shift away from long USD positioning - TDS
FXStreet (Bali) - According to the CFTC Commitments of Traders Report - Week Ending Tuesday, February 18 - only a modest shift away from aggregate long USD positioning amongst speculative investors was observed, TDS notes.
Key Quotes
"Although positioning (equating to a net USD long of USD16.4bn versus the major currencies) has dropped back to levels last seen in late December, the outstanding exposure is still within recent ranges."
"Overall, positioning showed few significant changes this week, perhaps reflecting an underlying uncertainty about where the markets are heading from here. Net EUR shorts of –6.9k contracts last week turned into a net long of +8.6k contracts this week, with positioning here reflecting the spot market’s inability to settle on a view or direction for the EUR over the past few weeks. Essentially, positioning has been chopping either side of a small net long/short EUR position since early January."
"Net JPY shorts of –79.7k contracts this week were little changed from the prior week and a very small net long in the CHF from the February 11th week turned into a small net short (-2.8k contracts this week). With investors trimming net MXN shorts a little more significantly this week (by around a third overall to –23.3k), the message here at least points to a little more confidence about the risk environment and calming EM concerns."
"In the commodity bloc, spec accounts maintained net short AUD positions at similar levels (-44.4k contracts) to the prior week (-47.4k) and maintained a small net NZD long (+8.9k contracts, from +7.6k). Trends here may reverse going forward, we feel. Net CAD shorts increased in the week to –65k contracts (from –58.9k), with investors taking advantage of the CAD bounce to sell."
"Lastly, momentum players jumped on board the rising GBP train this week, doubling net GBP longs to +22.3k contracts in the week."
Key Quotes
"Although positioning (equating to a net USD long of USD16.4bn versus the major currencies) has dropped back to levels last seen in late December, the outstanding exposure is still within recent ranges."
"Overall, positioning showed few significant changes this week, perhaps reflecting an underlying uncertainty about where the markets are heading from here. Net EUR shorts of –6.9k contracts last week turned into a net long of +8.6k contracts this week, with positioning here reflecting the spot market’s inability to settle on a view or direction for the EUR over the past few weeks. Essentially, positioning has been chopping either side of a small net long/short EUR position since early January."
"Net JPY shorts of –79.7k contracts this week were little changed from the prior week and a very small net long in the CHF from the February 11th week turned into a small net short (-2.8k contracts this week). With investors trimming net MXN shorts a little more significantly this week (by around a third overall to –23.3k), the message here at least points to a little more confidence about the risk environment and calming EM concerns."
"In the commodity bloc, spec accounts maintained net short AUD positions at similar levels (-44.4k contracts) to the prior week (-47.4k) and maintained a small net NZD long (+8.9k contracts, from +7.6k). Trends here may reverse going forward, we feel. Net CAD shorts increased in the week to –65k contracts (from –58.9k), with investors taking advantage of the CAD bounce to sell."
"Lastly, momentum players jumped on board the rising GBP train this week, doubling net GBP longs to +22.3k contracts in the week."