USD positioning perfectly neutral – Deutsche Bank

Research Team at Deutsche Bank, notes that bearish USD sentiment continues to moderate as speculators pared their net shorts, taking implied shorts as a fraction of open interest to a negligible -1% from -5% in the previous week.

Key Quotes

“At the same time, bullish sentiment in AUD, CAD, CHF and NZD declined, while bearish sentiment in EUR and GBP modestly increased just ahead of Wednesday’s FOMC minutes. Meanwhile, bullish positioning in JPY (the largest held net long) remained almost unchanged.

Traders in Financial Futures report show that both the leveraged funds and asset managers pared their implied USD shorts. Leveraged funds reduced their net longs in AUD, CAD and NZD, while extending their net shorts in GBP, and MXN. At the same time leveraged funds reduced their net shorts in EUR. Asset managers trimmed their net longs in EUR, AUD and MXN, while adding to their net shorts in GBP. In JPY, leveraged funds increased their net longs, whereas asset managers reduced their net shorts. Meanwhile, asset managers modestly increased their net longs in CAD. Elsewhere, net positions held by leveraged funds in CHF flipped to net shorts (albeit modestly) from net longs.”