Leveraged funds reduce short JPY, and increase short CHF positions – Nomura

Sandeep Kanihama FXStreet Contributor

In the week ending 6 March, leveraged funds continued to reduce JPY short positions, for a fourth consecutive week, notes the research team at Nomura.

Key Quotes

“JPY net short positioning stands at 9% of outstanding contracts, from 20% previously. Meanwhile, leveraged funds scaled back net longs to 47% (from 51%).”

“CHF: Following the Italian election, data suggests leveraged funds increased net short CHF positioning to 23% of outstanding contracts. Asset managers have swung from being positioned 2% net long to 11% net short.”

“GBP: Leveraged funds reduced long GBP positions to 43% of outstanding contracts, from 51% – moving away from the 1y high of 59% net long. Asset managers also added slightly to short positions.”

“EUR: As of last Tuesday, leveraged funds had pulled back EUR net longs slightly to 22% of outstanding contacts, from 27%. Asset managers modestly added to long positions and are now 40% net long.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.