USD longs added, JPY buy back continued - ANZs

The research team at ANZ lists down the CFTC leveraged positioning data for the week ending 11 April 2017.

Key Quotes

“During the week, leveraged funds raised their net long USD positions for the second consecutive week, by USD2.5bn to USD16.9bn. However, it is likely that long USD positions have been pared back following President Trump’s remarks on the USD getting too strong and his preference for low interest rates.”

“For the week, USD buying was broad-based with JPY and EM currencies being the main exceptions.”

“Leveraged accounts added USD2.1bn to their net long USD positions against the EUR to take them to USD11.1bn, the highest in four weeks as the French Presidential election draws near. Funds also raised their net USD longs against the GBP and CHF, by USD0.1bn and USD0.2bn respectively.” 

“However, leveraged accounts continued to buy back JPY against the USD, by a further USD0.9bn to turn their positons into net JPY longs of USD0.7bn, the first time since mid-November. Price action since the cut-off date suggests an extension of net JPY longs on heightened geopolitical concerns.”   

“Commodity currencies saw net selling for the sixth straight week, by a total of USD1.1bn. Net AUD longs were reduced by USD0.7bn to USD2.9bn, the lowest in four weeks. Meanwhile, leveraged accounts raised their net CAD and NZD shorts by a further USD0.4bn and USD0.1bn respectively to USD3.6bn and USD0.3bn.”

“On EM currencies, leveraged funds added to their net longs for the fifth straight week. They raised their net longs in the MXN and RUB, by USD0.3bn and USD0.1bn respectively to USD0.7bn and USD1.0bn, while keeping their net BRL longs steady at USD0.4bn.”

“Funds increased their net short positions in 10Y UST for the first time in six weeks. However, short positions might have been pared again following the rally in UST since President Trump’s remarks. Meanwhile, funds extended their net long gold positions for the fourth successive week, by another 16k contracts to 177k contracts, the highest since mid-November on increased geopolitical risk.”