22 Feb 2015
Specs: Further reduction in USD long positions - TDS
FXStreet (Bali) - IMM data for the week through February 17th showed a further reduction in speculative investors’ exposure to the USD long position.
Key Quotes
"IMM data for the week through February 17th reflected a further reduction in speculative investors’ exposure to the broader USD bullish position that has accumulated over the past few months. The aggregate USD long position implied by positioning in the major currencies fell to USD44 bn in the week through Tuesday, by our calculations, exactly USD5 bn off the recent peak and back to where the market was at the end of 2014."
"Once again, the EUR contract bore the brunt of the changes; net EUR shorts fell for a second week to –185.5k contracts, down nearly 10k contracts. Relatively more significant changes were seen in the JPY contract—which saw net shorts cut to –49k (from –55.1k last week). This represents the smallest bet against the JPY overall since late 2012, perhaps reflecting investors’ losing faith with the prospect for further BoJ stimulus or the implantation of domestic reforms. Net GBP shorts were also cut sharply—10k contracts—to –28.7k but this only takes positioning back to where it was at the start of the year."
"Elsewhere, investors seem disinclined to adjust positioning much at all. Net AUD (-53.8k) and net NZD (-5.7K) exposures were little changed on the week. Net short CAD positions fell slightly from last week’s –33.3k to –32.8k contracts. Net short CHF positioning rose modestly (-6.0k) while net short MXN positioning fell to –45.4k, well within recent ranges."
Key Quotes
"IMM data for the week through February 17th reflected a further reduction in speculative investors’ exposure to the broader USD bullish position that has accumulated over the past few months. The aggregate USD long position implied by positioning in the major currencies fell to USD44 bn in the week through Tuesday, by our calculations, exactly USD5 bn off the recent peak and back to where the market was at the end of 2014."
"Once again, the EUR contract bore the brunt of the changes; net EUR shorts fell for a second week to –185.5k contracts, down nearly 10k contracts. Relatively more significant changes were seen in the JPY contract—which saw net shorts cut to –49k (from –55.1k last week). This represents the smallest bet against the JPY overall since late 2012, perhaps reflecting investors’ losing faith with the prospect for further BoJ stimulus or the implantation of domestic reforms. Net GBP shorts were also cut sharply—10k contracts—to –28.7k but this only takes positioning back to where it was at the start of the year."
"Elsewhere, investors seem disinclined to adjust positioning much at all. Net AUD (-53.8k) and net NZD (-5.7K) exposures were little changed on the week. Net short CAD positions fell slightly from last week’s –33.3k to –32.8k contracts. Net short CHF positioning rose modestly (-6.0k) while net short MXN positioning fell to –45.4k, well within recent ranges."