USD longs pared back, GBP shorts added - ANZ

Research Team at ANZ lists down the CFTC positioning data for the week ending 10 January 2017.

Key Quotes

“After two consecutive weeks of net buying, leveraged funds pared back their net long USD positions by USD0.4bn to USD28.8bn. Long USD positions remain elevated and are susceptible to further near-term reductions.”

“USD selling was concentrated against the JPY. Funds reduced their net JPY short positions by USD2.1bn to USD5.8bn after two consecutive weeks of JPY selling. This is in line with the yen’s price action during the week. EUR and CAD were the only other major currencies that saw net buying against the USD, though for modest amounts. Funds lowered their net EUR and CAD shorts by USD0.1bn each.”

“Leveraged funds stayed bearish on the GBP, adding USD1.1bn to take their overall net short GBP positions to USD4.7bn, the highest in eight weeks. Funds also added USD0.2bn to take their net overall net CHF shorts to USD2.3bn.”

“Despite their strong price action, leveraged funds continued to pare back their AUD and NZD positions during the week. Funds added USD0.4bn to take their net short AUD position to USD1.3bn. This is the fourth straight week of AUD selling. Funds also reduced their net long NZD position by USD0.2bn to USD0.9bn, the lowest overall longs since May 2016.”

“EM currencies were bought by leveraged funds, led by MXN – which saw net buying against the USD for the third consecutive week. Funds added USD0.2bn to their overall EM portfolio in the week.”

“Net short positions in 10 year USTs continued to move higher as investors position for higher interest rates. Gold saw net buying for the first time in ten weeks. Net long crude oil positions were reduced for the second consecutive week.”