Leveraged funds sold USD for the second week – ANZ

Anil Panchal FXStreet

Based on the Commodity Futures Trading Commission (CFTC) data for the week ended on August 27, the Australia and New Zealand Banking Group (ANZ) anticipate funds rebuilding their long US Dollar (USD) positions volatile while saying that the leveraged funds turned a net US Dollar (USD) seller for the second consecutive week while asset managers doing exactly opposite.

Key quotes

Leveraged funds sold USD for the second week, while asset managers bought USD for two weeks in a row. Post the cut-off date, USD rebounded to scale to a new high in this cycle, which could see funds rebuild their long USD positions.

Funds sold USD against EUR and CHF, while selling GBP and JPY. Meanwhile, money managers acted differently, buying USD against EUR, JPY and CHF, and were a net buyer of GBP.

Commodity currencies saw overall net selling by both funds and asset managers. Both pared their net CAD longs. However, they did the opposite in AUD, with funds being a buyer and money managers a seller. On NZD, funds were a seller while asset managers’ position was unchanged. Both funds and money managers remained net short in AUD and NZD.

On EM FX, funds’ net longs were unchanged while asset managers pared their net longs for the fourth successive week.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.