ECB caught a market VERY short EUR - ANZ


FXStreet (Guatemala) - Analysts at ANZ noted, in respect to the CFTC speculative positioning data for the week ending 1st Dec, that leveraged funds went into last week’s ECB meeting carrying the largest net short EUR position since April.

Key Quotes:

"There was net selling of EUR for the sixth consecutive week, taking overall net short positions to USD19bn. The smaller than expected easing delivered at the 3 December ECB meeting resulted in a short-squeeze which sent EUR rallying sharply. We will find out how much short positions were unwound when the next set of data is released. But given the size of the position that had been built up, it will probably take a few weeks to undo.

Bearish bets against CHF by leveraged funds rose to a new record high of USD3.6bn. This is likely an indirect play on expectations of more aggressive ECB easing, which was expected to weaken the Swiss franc. Similar to the euro, we expect to see a large unwinding of CHF short positions at the next CFTC report.

For the first time since April, leveraged funds have turned net short on GBP.The USD0.6bn of net selling in the week took overall GBP positions from net long USD0.3bn in the previous week to net short USD0.3bn.

Commodity currencies bucked the trend of lower commodity prices. There was net buying of commodity currencies worth USD0.6bn, with AUD seeing net buying of USD0.8bn to reduce its overall net short position to USD0.9bn. This is despite iron ore prices falling almost 4% during the period. CAD saw net selling for the third consecutive week, increasing its overall net short position by USD0.2bn to USD2.0bn.

Leveraged funds reduced their net short exposure in EM currencies slightly. This was mainly through lowering their net short position in MXN from USD0.5bn to USD0.4bn. Short positions in BRL and RUB were increased slightly.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1300 after German inflation data

EUR/USD continues to trade in the negative territory below 1.1300 as the American session gets underway. The data from Germany showed on Friday that the Harmonized Index of Consumer Prices, the ECB's preferred gauge of inflation, climbed to 6% on a yearly basis in November, compared to the market expectation of 5.4%.

EUR/USD News

GBP/USD extends slump below the 1.3300 mark

GBP/USD trades near its 2021 low in the 1.3290 region, as demand for the greenback picked up pace during US trading hours. Market participants are digesting the latest covid-related news, somehow less concerned about its effects on economic developments. 

GBP/USD News

Gold: En route to challenge the November monthly low

Spot gold gapped lower at the weekly opening. Concerns related to the new coronavirus variant named Omicron hit hard the markets on Friday, although thinned conditions may have exacerbated the reaction to the news, as the US celebrated Thanksgiving on Thursday.

Gold News

Ethereum breaks out of bullish pennant, targets new all-time high at $5,000

Ethereum price lost 14% of its market value in turmoil on Friday. ETH is on the path to recovery with a bullish break out of the pennant. Expect a rally to emerge as tailwinds attribute to new all-time highs.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures