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15 Dec 2014
Major currencies see net positioning reduced – TDS
FXStreet (Barcelona) - The TD Securities Team shares the IMM positioning data for the week ending December 9th, noting that most major currency contracts saw net positioning reduced in the week with the bullish bets on the dollar down USD5bn.
Key Quotes
“IMM data for the week through December 9th showed investors were perhaps getting into the holiday spirit and moving to reduce exposure into the calendar year-end. Most major currency contracts saw net positioning reduced in the week. This resulted in a fairly sizeable reduction in the aggregate bullish bet on the USD to USD 44.1bn in the week, down nearly USD 5 bn from the prior week’s report and the lowest aggregate long USD punt since late October.“
“The EUR contract saw the bulk of the activity in the week, with net EUR shorts cut from –159.3k contracts in the December 2nd week to –136.9k in the current week—that accounted for around USD3.5bn of the overall reduction in the long USD bet held by CTA and speculative accounts here.”
“Net JPY shorts were cut marginally to 104.1k contracts (from –111.1k contracts in the prior week) while net CHF shorts were steady at –22.2k. The GBP contract saw one of the bigger relative shifts in positioning this week, with net shorts cut back to –23.6k contracts from –31k previously.”
“The AUD saw an aggregate increase in speculative positioning this week, however, with net shorts nudged up from –41.1k contracts to –45k but that was the exception among the DM currencies rather than the rule. Net NZD positions were stable at –2.2k contracts (from –1.6k) while net CAD shorts were cut to –14.3k this week (from –18.4k). Speculative participation in the short CAD trade remains really quite low considering the CAD’s slide to new cycle lows this week. There appears to be ample3 room still for CAD shorts to build. Net MXN shorts rose to –48.6k contracts this week from –43k in the prior week.”
Key Quotes
“IMM data for the week through December 9th showed investors were perhaps getting into the holiday spirit and moving to reduce exposure into the calendar year-end. Most major currency contracts saw net positioning reduced in the week. This resulted in a fairly sizeable reduction in the aggregate bullish bet on the USD to USD 44.1bn in the week, down nearly USD 5 bn from the prior week’s report and the lowest aggregate long USD punt since late October.“
“The EUR contract saw the bulk of the activity in the week, with net EUR shorts cut from –159.3k contracts in the December 2nd week to –136.9k in the current week—that accounted for around USD3.5bn of the overall reduction in the long USD bet held by CTA and speculative accounts here.”
“Net JPY shorts were cut marginally to 104.1k contracts (from –111.1k contracts in the prior week) while net CHF shorts were steady at –22.2k. The GBP contract saw one of the bigger relative shifts in positioning this week, with net shorts cut back to –23.6k contracts from –31k previously.”
“The AUD saw an aggregate increase in speculative positioning this week, however, with net shorts nudged up from –41.1k contracts to –45k but that was the exception among the DM currencies rather than the rule. Net NZD positions were stable at –2.2k contracts (from –1.6k) while net CAD shorts were cut to –14.3k this week (from –18.4k). Speculative participation in the short CAD trade remains really quite low considering the CAD’s slide to new cycle lows this week. There appears to be ample3 room still for CAD shorts to build. Net MXN shorts rose to –48.6k contracts this week from –43k in the prior week.”