4 May 2015
Leveraged funds reduced overall net long USD positioning - ANZ
FXStreet (Bali) - Leveraged funds reduced their overall net long USD positioning by USD3.2bn to USD27.5bn in the week up to April 28th, according to ANZ Research.
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.2bn to USD27.5bn in the week, marking the third consecutive week of long USD reductions (see Figure 3). The reduction in USD long positioning was unsurprising given the weaker than expected New Home Sales and Core Durable Goods Orders data."
"The decrease in USD longs was reflected across the board with the exception of GBP and MXN. Net selling against the dollar was led by EUR (USD1.6bn) and JPY (USD1.2bn). Despite the ongoing uncertainty regarding Greece, leverage funds continue to cover their EUR shorts for the fifth consecutive week. JPY short positions are now at their lowest since late 2012."
"For GBP, uncertainty around the 7 May election outcome is likely behind the USD0.3bn increase in short positions. The unexpected fall in April UK manufacturing activity released on 1 May and ongoing election uncertainty will likely see net short position rise, judging by the price action."
"Looking ahead, after the CFTC cut-off date, it is likely that leveraged funds continued to reduce long USD positions. The much weaker than expected Q1 GDP at 0.2% s.a. qoq annualised has further accelerated a downward move on the DXY. Given the price action, we expect the next CFTC report to also show a decline in long USD positions. The next key release for the US will be the April employment report on Friday (8 May), which will be post the 5 May cut-off date for the next CFTC report. Other key releases include the ISM nonmanufacturing report on 5 May and the non-farm productivity report on 6 May."
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.2bn to USD27.5bn in the week, marking the third consecutive week of long USD reductions (see Figure 3). The reduction in USD long positioning was unsurprising given the weaker than expected New Home Sales and Core Durable Goods Orders data."
"The decrease in USD longs was reflected across the board with the exception of GBP and MXN. Net selling against the dollar was led by EUR (USD1.6bn) and JPY (USD1.2bn). Despite the ongoing uncertainty regarding Greece, leverage funds continue to cover their EUR shorts for the fifth consecutive week. JPY short positions are now at their lowest since late 2012."
"For GBP, uncertainty around the 7 May election outcome is likely behind the USD0.3bn increase in short positions. The unexpected fall in April UK manufacturing activity released on 1 May and ongoing election uncertainty will likely see net short position rise, judging by the price action."
"Looking ahead, after the CFTC cut-off date, it is likely that leveraged funds continued to reduce long USD positions. The much weaker than expected Q1 GDP at 0.2% s.a. qoq annualised has further accelerated a downward move on the DXY. Given the price action, we expect the next CFTC report to also show a decline in long USD positions. The next key release for the US will be the April employment report on Friday (8 May), which will be post the 5 May cut-off date for the next CFTC report. Other key releases include the ISM nonmanufacturing report on 5 May and the non-farm productivity report on 6 May."