EUR shorts reduced slightly, net longs in JPY added - RBS

Research Team at RBS, lists down this week’s CFTC CoT survey ending August 2nd, meaning it covers the Bank of Japan decision but does not cover the Bank of England’s QE expansion or the July US NFP report.

Key Quotes

“In rates, asset managers reduced shorts in both EDs and TYs but cut longs in US. Levered funds, meanwhile, added to shorts, most notably in TYs (-$6.57bn) and WNs (-$4.87bn). Speculative positioning more broadly reflected steepening in the market. Longs in both TYs and USs were pared back while shorts in both FVs and TUs were scaled back as well (in TUs, specs actually flipped back to a small net long.)

In FX, speculative accounts added to net longs in JPY post-BoJ. Just a few days before the Bank of England’s decision and QE expansion, specs added to net GBP shorts, which were already been at a record large last week. EUR shorts, meanwhile, were reduced slightly. In fact, levered accounts either added to net shorts or pared net longs in each currency tracked save for EUR, where shorts were reduced. Positioning in the antipodes was little changed in the latest week and CAD net longs were reduced by speculators.”