Dollar longs pared, EUR shorts at multiyear low – Deutsche Bank

Shuaib Chowdhary, Macro Strategist at Deutsche Bank, notes that IMM data suggests that investors pared long positions in the US dollar, with implied USD longs as a fraction of open interest falling to 16% from 19 % last week.

Key Quotes

“In GBP, positioning remains bearish, with shorts still close to record levels. Meanwhile in EUR, speculators pared their shorts by 50%, taking EUR shorts to their lowest level since May 2014. Investors extended their shorts in CHF by a third while cutting JPY shorts by a fifth. Among the commodity currencies, investors added to their long AUD exposure while extending CAD shorts modestly. Positioning in NZD and MXN remains largely unchanged.”

“According to the TFF report, leveraged funds scaled back their USD longs by a third while asset managers almost doubled their shorts. In line with last week’s trend, leveraged funds continued to cut their EUR shorts and asset managers continued to extend their EUR longs. In GBP, leveraged funds pared their short exposure by 25%. Leveraged funds cut their short positions in JPY by twothirds while keeping CHF shorts broadly unchanged.”

“Asset managers cut their JPY shorts and extended their CHF longs. Among the commodity currencies, both communities extended their AUD longs aggressively but took contrasting views on CAD. While leveraged funds extended their CAD shorts, asset managers added to their CAD longs. Meanwhile in NZD, leveraged fund positioning flipped from long to flat, while asset managers’ short exposure remained unchanged. In MXN, leveraged fund positioning flipped positive and asset manager positioning remained unchanged.”