According to the positioning data for the week ending 15 August 2017, leveraged funds were net buyers of USD for the first time since mid-May, noes he analysis team at ANZ.
Key Quotes
“Overall net short USD positions were reduced by USD1.5bn to USD5.8bn. Given that the dollar had been sold for the previous 12 weeks straight and the level of short positions reached their highest in three years, some selling respite is not unexpected. With the minutes from the July FOMC meeting showing officials starting to question their inflation outlook, it is too soon to expect a major turnaround in short dollar positioning.”
“EUR saw the largest net selling in the week. Funds reduced their net long EUR position by USD2.1bn to USD1.5bn. This could be due to profit taking after EUR/USD failed to push further beyond the 1.19 level. With the ECB minutes showing officials expressing concern over EUR strength, further scaling back of long EUR positions is possible.”
“NZD recorded the second biggest net selling as leveraged funds pared back their overall net long exposure to the kiwi by USD0.5bn to USD1.8bn, the lowest in eight weeks. This comes after the RBNZ said that they had become more uncomfortable with the level of the NZD.”
“GBP also saw net selling, as funds added USD0.4bn to take their net GBP shorts to USD1.2bn, reversing net buying from the previous week. Funds also reduced their net CHF longs marginally in the week. Meanwhile, net JPY shorts were cut for the fourth consecutive week by USD0.9bn to USD7.3bn. Heightened geopolitical tensions have seen yen positioning go up on safe-haven demand.”
“Funds’ bullishness on AUD and CAD continues. Net long AUD positions rose for the tenth consecutive week, up by USD0.4bn to USD6.1bn. Net long CAD positions rose by USD0.1bn to USD3.8bn.”
“EM currencies saw combined net selling of USD0.3bn during the week, with MXN seeing the bulk of the selling.”
“Funds’ positioning in crude oil were trimmed for the second consecutive week. However, net longs in gold rose for the sixth straight week on increased geopolitical risks. Meanwhile, net longs in 10yr USTs longs were cut following net buying in the previous week.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.