Leveraged fund GBP, JPY, AUD and CHF short positioning extended into year-end – Nomura

Analysts at Nomura lists down the IMM leveraged funds and asset managers’ balance breakdown data for the week ending 27 December.

Key Quotes

“JPY: According to IMM data for the week ending 27 December, leveraged funds’ net short positioning was extended to 55% of outstanding contracts, a yearly high. Net short positioning had been reduced last week, but this week leveraged fund short positioning in JPY is at yearly highs. Asset manager positioning is relatively unchanged.”

“GBP: Leveraged funds’ GBP short positioning was also extended to 41% of outstanding contracts, from 30% in the previous week. However, short positioning is still below levels in August 2016, when short positioning reached 61% of outstanding contracts. Asset managers’ positioning was unchanged on the week.”

“CHF: Leveraged funds’ positioning in CHF returned to net shorts at 40%, having momentarily reached 16% net longs in the prior week. This is however still less than previous net short positioning of 65% of outstanding contracts in December 2016.”

“AUD: Leveraged funds’ positioning in AUD turned net short, for the first time since end June 2016. Net short positions in leveraged funds stand at 9% of outstanding contracts (flat previously). Asset managers also extended their short positions, reaching 42% of outstanding contracts, the highest level since January 2016.”