15 Feb 2015
CFTC report: Specs reluctant to add or cut positions - TDS
FXStreet (Bali) - Last week saw one of the dullest CFTC reports in quite a while, notes the FX Team at TD Securities, with Specs current exposure reluctant to add or cut positions.
Key Quotes
"This is one of the dullest CFTC reports in quite a while. Net Non-Commercial positioning in the major currency futures contracts was little changed in the week through February 10th, versus the previous week’s data. Speculative and CTA-type accounts appear to have sat on their hands over the past week, content with current exposure and reluctant to add or cut positions."
"The aggregate implied USD long positioning versus the major currencies dropped slightly but remains substantial—USD46.6bn (versus USD47.8bn last week) by our calculations. The steady accumulation of long USD/short currency positions late last year has clearly slowed. If market trends stabilize and reverse modestly—as has been the case in the past few weeks—a self-reinforcing tendency for investors to lighten up positioning from relatively extreme levels may develop more momentum."
"There is really little else of note to signal in this week’s data; net EUR shorts remain significant at –194.6k contracts but this is only marginally lighter than the –196.3k contract position reported last week. Ditto for the JPY, where net JPY shorts were trimmed slightly in line with the recent trend but , at -255.1k contracts, the net short is little different from last week’s –59.5k position. Net GBP shorts were reduced by around 4k contracts this week to –38.6k and net CHF shorts were more or less unchanged at –5.4k this week and net MXN shorts were also stable (-49.2k contracts, from –48.2k last week)."
"Commodity currencies saw a little more activity. Investor reticence to participate in the recent CAD sell-off eased a little this week, which has unfortunately coincided with a minor recovery in the CAD. Net CAD shorts rose to –33.3k contracts thought Tuesday, from –27.3k last week. Net AUD shorts were reduced by 3k to –53.1k contracts this week. Net Kiwi shorts rose to –6.2k contracts (from –4.5k last week)."
Key Quotes
"This is one of the dullest CFTC reports in quite a while. Net Non-Commercial positioning in the major currency futures contracts was little changed in the week through February 10th, versus the previous week’s data. Speculative and CTA-type accounts appear to have sat on their hands over the past week, content with current exposure and reluctant to add or cut positions."
"The aggregate implied USD long positioning versus the major currencies dropped slightly but remains substantial—USD46.6bn (versus USD47.8bn last week) by our calculations. The steady accumulation of long USD/short currency positions late last year has clearly slowed. If market trends stabilize and reverse modestly—as has been the case in the past few weeks—a self-reinforcing tendency for investors to lighten up positioning from relatively extreme levels may develop more momentum."
"There is really little else of note to signal in this week’s data; net EUR shorts remain significant at –194.6k contracts but this is only marginally lighter than the –196.3k contract position reported last week. Ditto for the JPY, where net JPY shorts were trimmed slightly in line with the recent trend but , at -255.1k contracts, the net short is little different from last week’s –59.5k position. Net GBP shorts were reduced by around 4k contracts this week to –38.6k and net CHF shorts were more or less unchanged at –5.4k this week and net MXN shorts were also stable (-49.2k contracts, from –48.2k last week)."
"Commodity currencies saw a little more activity. Investor reticence to participate in the recent CAD sell-off eased a little this week, which has unfortunately coincided with a minor recovery in the CAD. Net CAD shorts rose to –33.3k contracts thought Tuesday, from –27.3k last week. Net AUD shorts were reduced by 3k to –53.1k contracts this week. Net Kiwi shorts rose to –6.2k contracts (from –4.5k last week)."