Leveraged funds extended EUR long and USD short - Nomura

Analysts at Nomura note that in the week ended 30 January, leveraged funds’ net long position in EUR rose from 27% to 41%, the highest level since mid-April 2014.

Key Quotes

“Asset managers remained long EUR, with the current level (38%) broadly in line with the six-month average.”

“GBP: Leveraged funds increased GBP net longs from 43% to 48%, recording again the highest level since the EU referendum. Asset managers’ net short position in GBP was increased from 28% to 33%.”

“JPY: Leveraged funds’ net short JPY positioning fell from 46% to 36%. The one-year high is 64%, recorded in July 2017. In contrast, asset managers built long JPY positions from 22% to 39%, the highest since mid-March 2013.”

“NZD & CAD: Leveraged funds decreased NZD net shorts from 22% to 12%. The have cut short positioning for five weeks, while maintaining a net NZD short since midOctober 2017. On the other hand, leveraged funds’ long positioning in CAD rose to 38% from 27%; the last-year high was 71% in mid-October 2017.”

“USD: Our BIS volume-weighted proxy shows that leveraged funds have maintained a net short USD (-17%) position for four weeks.”