1 Dec 2014
CFTC report: New record high in net USD longs - TDS
FXStreet (Bali) - The FX Strategy Team at TDS reviews the changes in the CFTC Commitments of Traders Report, for the week ending Tuesday, November 25th, noting that a new record high implied net USD long position was reached.
Key Quotes
"The CFTC Commitments of Traders report for the week ending on November 25th showed a new record high implied net USD long position, which reached US$49.4 bn from US$47.6bn the week prior. This, however, took place on the back of relatively small changes in positioning for most of the currencies we cover."
"The JPY saw the largest variation in overall positioning, with net JPY shorts increasing to -104.4K from -92.4K the week prior."
"The GBP and AUD run the same fate as the JPY, with net sterling shorts increasing to -30.7K from -22.8K, and net AUD shorts extended to -44.1K from -37.6K outstanding on November 18th. MXN, CHF, and NZD also endured a decline in investors' confidence in their outlooks, which translated into modest net short extensions to -32.5K, -23.4K, and -2.3K net shorts, respectively."
"The EUR and the CAD were the only exceptions to the broader changes in positioning favoring USD longs. The former registered short covering to the tune of 3.7K contracts, which landed ned EUR shorts at -165.1K, while net CAD shorts were scaled back to -16.3K from -19.5K the week prior."
"It will be interesting to see on Friday how specs positioning on the Dollar Bloc and the MXN has changed in the aftermath of the recent sell-off in crude oil and other commodities. The bounce we are seeing in spot today and the fact that the crude oil rout took place during the US Thanksgiving may contribute to relatively moderate changes, overall."
Key Quotes
"The CFTC Commitments of Traders report for the week ending on November 25th showed a new record high implied net USD long position, which reached US$49.4 bn from US$47.6bn the week prior. This, however, took place on the back of relatively small changes in positioning for most of the currencies we cover."
"The JPY saw the largest variation in overall positioning, with net JPY shorts increasing to -104.4K from -92.4K the week prior."
"The GBP and AUD run the same fate as the JPY, with net sterling shorts increasing to -30.7K from -22.8K, and net AUD shorts extended to -44.1K from -37.6K outstanding on November 18th. MXN, CHF, and NZD also endured a decline in investors' confidence in their outlooks, which translated into modest net short extensions to -32.5K, -23.4K, and -2.3K net shorts, respectively."
"The EUR and the CAD were the only exceptions to the broader changes in positioning favoring USD longs. The former registered short covering to the tune of 3.7K contracts, which landed ned EUR shorts at -165.1K, while net CAD shorts were scaled back to -16.3K from -19.5K the week prior."
"It will be interesting to see on Friday how specs positioning on the Dollar Bloc and the MXN has changed in the aftermath of the recent sell-off in crude oil and other commodities. The bounce we are seeing in spot today and the fact that the crude oil rout took place during the US Thanksgiving may contribute to relatively moderate changes, overall."