28 Jul 2014
Increase in the implied net USD longs - TDS
FXStreet (Bali) - The FX Team at TDS reviews the latest changes in the CFTC Commitments of Traders Report , for the week ending Tuesday, July 22nd, noting an overall increase in the implied net USD long position.
Key Quotes
"Changes in positioning by speculative investors and CTA-type accounts during the week ending on July 22nd reflected an overall increase in the implied net USD long position equivalent to US$3.9bn to a total of US$9.8bn. The latest Commitments of Traders Report from the CFTC shows a net short extension of 26.0K contracts in EUR was the largest change relative to the previous week. This left the total net short on the EUR at -88.8K contracts, the most bearish bet on the common currency since late 2012."
"GBP also experienced a sizeable change in overall positioning, as speculative investors scaled back net longs on sterling by roughly a quarter to a total of +27.5K, the lowest since mid-March."
"MXN benefited once again from investors willingness to place a bullish bet on its outlook. Net MXN longs were extended to +79.1K from +69.6K prior."
"Contrary to our expectations, CAD run a similar fate, with an extension of net longs to +20.6K contracts, the most bullish position since February 2013. We still see few – if any – arguments to build CAD longs and we would expect a reversal to more neutral levels."
"The other two commodity currencies showed more modest changes in positioning. Net NZD longs were virtually flat at +15.1K contracts, while AUD saw a moderate net long reduction from +39.7K contracts to +38.8K."
"JPY saw short covering equivalent to 9.0K contracts to a total net short of -53.9K contracts, which remains within the lowest net short positions observed on the currency since November of 2012. And lastly, CHF registered an extension of net shorts to -7.4K contracts from -6.3K the week prior. "
Key Quotes
"Changes in positioning by speculative investors and CTA-type accounts during the week ending on July 22nd reflected an overall increase in the implied net USD long position equivalent to US$3.9bn to a total of US$9.8bn. The latest Commitments of Traders Report from the CFTC shows a net short extension of 26.0K contracts in EUR was the largest change relative to the previous week. This left the total net short on the EUR at -88.8K contracts, the most bearish bet on the common currency since late 2012."
"GBP also experienced a sizeable change in overall positioning, as speculative investors scaled back net longs on sterling by roughly a quarter to a total of +27.5K, the lowest since mid-March."
"MXN benefited once again from investors willingness to place a bullish bet on its outlook. Net MXN longs were extended to +79.1K from +69.6K prior."
"Contrary to our expectations, CAD run a similar fate, with an extension of net longs to +20.6K contracts, the most bullish position since February 2013. We still see few – if any – arguments to build CAD longs and we would expect a reversal to more neutral levels."
"The other two commodity currencies showed more modest changes in positioning. Net NZD longs were virtually flat at +15.1K contracts, while AUD saw a moderate net long reduction from +39.7K contracts to +38.8K."
"JPY saw short covering equivalent to 9.0K contracts to a total net short of -53.9K contracts, which remains within the lowest net short positions observed on the currency since November of 2012. And lastly, CHF registered an extension of net shorts to -7.4K contracts from -6.3K the week prior. "