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3 Mar 2014
Flash: Spec show lowest long USD exposure since early November - TDS
FXStreet (Bali) - According to the CFTC Commitments of Traders Report for the week of February 25th, speculators cutt overall exposure to the USD back a little further, notes the Strategy Team at TDS.
Key Quotes
"The aggregate USD position dropped to a total of USD13.7bn against the major currencies in the week, the lowest aggregate long USD exposure since early November."
"Investors are a little more constructive on the EUR—a trend that may extend after Eurozone data dampened speculation of more ECB easing at next week’s policy meeting. Net EUR longs rose to total +13.9k contracts in the latest week (from +8.6k last). Net GBP longs rose to +28.8k (from +22.3k). The small net CHF short of –2.8k contracts that the market was running last week has been trimmed to a virtually flat exposure (a small net long of just 358k contracts)."
"Investors appear comfortable committing a little more cash to the short side of the JPY trade again. Net shorts rose for a third consecutive week this week to total –85.1k contracts (from –79.7k last week). Net shorts remain well shy of the recent peak (-143.8k contracts) but this is still a sizeable position that risks getting squeezed a bit harder in the event of a ratcheting up of risk aversion."
"The commodity currencies were a little more active. CTAs trimmed net CAD shorts to –58.6k contracts this week (-65k last) and reduced net AUD shorts to –38.9k (-44.3k last) while boosting net long NZD positions slightly (+10.9k contracts, from +8.9k)."
"Net MXN shorts fell slightly to –21.6k contracts in the February 25th week but investors are clearly reluctant to buy back into riskier, higher yielding assets, having held a net short position in the peso for six consecutive weeks now."
Key Quotes
"The aggregate USD position dropped to a total of USD13.7bn against the major currencies in the week, the lowest aggregate long USD exposure since early November."
"Investors are a little more constructive on the EUR—a trend that may extend after Eurozone data dampened speculation of more ECB easing at next week’s policy meeting. Net EUR longs rose to total +13.9k contracts in the latest week (from +8.6k last). Net GBP longs rose to +28.8k (from +22.3k). The small net CHF short of –2.8k contracts that the market was running last week has been trimmed to a virtually flat exposure (a small net long of just 358k contracts)."
"Investors appear comfortable committing a little more cash to the short side of the JPY trade again. Net shorts rose for a third consecutive week this week to total –85.1k contracts (from –79.7k last week). Net shorts remain well shy of the recent peak (-143.8k contracts) but this is still a sizeable position that risks getting squeezed a bit harder in the event of a ratcheting up of risk aversion."
"The commodity currencies were a little more active. CTAs trimmed net CAD shorts to –58.6k contracts this week (-65k last) and reduced net AUD shorts to –38.9k (-44.3k last) while boosting net long NZD positions slightly (+10.9k contracts, from +8.9k)."
"Net MXN shorts fell slightly to –21.6k contracts in the February 25th week but investors are clearly reluctant to buy back into riskier, higher yielding assets, having held a net short position in the peso for six consecutive weeks now."