15 Jun 2014
Specs: EUR net shorts keep growing - BBH
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at BBH, reviews the latest changed on speculative positioning in the futures market.
Key Quotes
"The largest position adjustment in the reporting week ending June 10, was the euro. Gross longs and gross shorts both changed by more than 10k contracts. There were only 3 other gross positions that were adjusted by more than 5k contracts. As has been the recent pattern, the gross euro longs continue to be culled. They fell by about 30% to 43.7k contracts. As recently as early May, there were 111k gross long euro contracts in speculators' hands. The gross short position rose by a little more than 10% to 100.9k contracts, which is about a quarter more than in early May. Since flipping to the short side in early May, the net short position has grown in each of the past four weeks."
"We note that this reporting period ended prior to BOE's Carney rate warning that saw sterling futures experience record volume. The high volume in a rising market suggest new longs were established that are not picked up in this report. The gross short sterling positions rose for the second week in a row and we suspect that some of the late shorts capitulated."
"The net short yen position rose to a new 2-month high of 82.2k contracts. Longs were pared slightly and just below 12k contracts, it is the third lowest gross long positions since 2003. Gross shorts increased by 7.3k contracts to 94.1k."
"The dollar rose nearly 20 big figures against the Mexican peso during this reporting period, but the peso bulls were not shaken. The gross longs grew by less than 1k contracts and about 3.3k short gross short contracts were covered. This resulted in an increase in the net long position to 90.2k contracts."
"In the US 10-year note futures, the bears continued to dominate. The net short position rose to 71.9k contracts from 43.3k. This was the result of gross longs shaving 11.2k contracts (to 372k) and the gross shorts adding 17.4k contracts (to 443.9k)."
Key Quotes
"The largest position adjustment in the reporting week ending June 10, was the euro. Gross longs and gross shorts both changed by more than 10k contracts. There were only 3 other gross positions that were adjusted by more than 5k contracts. As has been the recent pattern, the gross euro longs continue to be culled. They fell by about 30% to 43.7k contracts. As recently as early May, there were 111k gross long euro contracts in speculators' hands. The gross short position rose by a little more than 10% to 100.9k contracts, which is about a quarter more than in early May. Since flipping to the short side in early May, the net short position has grown in each of the past four weeks."
"We note that this reporting period ended prior to BOE's Carney rate warning that saw sterling futures experience record volume. The high volume in a rising market suggest new longs were established that are not picked up in this report. The gross short sterling positions rose for the second week in a row and we suspect that some of the late shorts capitulated."
"The net short yen position rose to a new 2-month high of 82.2k contracts. Longs were pared slightly and just below 12k contracts, it is the third lowest gross long positions since 2003. Gross shorts increased by 7.3k contracts to 94.1k."
"The dollar rose nearly 20 big figures against the Mexican peso during this reporting period, but the peso bulls were not shaken. The gross longs grew by less than 1k contracts and about 3.3k short gross short contracts were covered. This resulted in an increase in the net long position to 90.2k contracts."
"In the US 10-year note futures, the bears continued to dominate. The net short position rose to 71.9k contracts from 43.3k. This was the result of gross longs shaving 11.2k contracts (to 372k) and the gross shorts adding 17.4k contracts (to 443.9k)."