Leveraged funds’ USD long positioning extended – Nomura

Analysts at Nomura note that the leveraged funds extended USD longs in the week ending Tuesday 29 May as according to our BIS volume-weighted measure, net-long USD positions reached 9% of outstanding contracts, the highest level since early January 2018 (previous: 5%).

Key Quotes

“On the other hand, asset managers' net-short positioning remained unchanged at 3%.”

“JPY: Leveraged funds' JPY positioning turned short for the first time since early March. The net-shorts stood at 8%. In contrast, Asset managers built up JPY longs, from 1% to 6%.”

“EUR&GBP: EUR net-short positioning was slightly reduced to 14% from 15%, the oneyear high of net-shorts. Leveraged funds decreased GBP net-longs to 32% from 45% previously. The one-year high is 59% reached in early February.”

“AUD&CAD: We saw short reductions in leveraged fund AUD and CAD positioning, now both net-short at 17% and 39%, respectively.”