According to the CFTC positioning data for the week ending 20 June 2017, leveraged funds were net sellers of the USD for the fifth straight week despite the US Federal Reserve delivering a rate hike at its June meeting, notes the analysis team at ANZ.
Key Quotes
“Overall net long USD positions were reduced by USD2.5bn to USD6.7bn, the lowest since September 2016. Positioning on the ICE US Dollar Index, which is based off the DXY, fell by USD2.2bn to USD5.5bn, a 3-year low.”
“Dollar selling was mostly broad-based except against the EUR. The shift to being outright net long EUR the previous week did not last. Leveraged funds were heavy sellers of the single currency to the tune of USD3.3bn, resulting in an overall net short EUR position of USD2.4bn. The change in positioning could be due to profit taking, following eight consecutive weeks of net EUR buying and as EUR/USD failed to break above the 1.13 level.”
“GBP saw net buying after three straight weeks of selling. Leveraged funds reduced their net short GBP position by USD0.5bn to USD0.8bn. The surprise 5-3 decision to leave rates unchanged by the BoE at their 15 June meeting, raising the possibility that the BoE could be the next major central bank to follow the Fed in hiking rates, likely spurred the GBP buying. Funds also reduced their net short JPY positions for the second week running, this time by USD1.1bn to USD1.3bn.”
“CHF positioning turned net long for the first time since December 2016.”
“Despite continued weakness in oil prices, commodity currencies experienced net buying for the fourth consecutive week. Leveraged funds have turned net long AUD again following net buying of USD1.5bn, while overall net long NZD positions rose to their highest level since February this year ahead of the 22 June RBNZ meeting.”
“Among EM currencies, MXN saw net selling of USD1.3bn to reduced leveraged funds’ overall net long position to USD1.0bn. RUB’s net long positions were marginally reduced while BRL positioning was largely unchanged.”
“Net long 10-year UST positions rose to their highest since December 2007. Meanwhile, net long positions in crude oil and gold were reduced in line with falling commodity prices during the week.”
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.
Latest Forex News
Editors’ Picks
EUR/USD loses 1.21 as the dollar extends its gains
EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points.
GBP/USD retreats amid UK GDP miss, reopening concerns
GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.
XAU/USD drops back below $1900, as US dollar rebounds ahead of data
Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.
Ethereum price prepares for a bullish weekend, targeting $3,000
Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis.
Hot Inflation is warming the seat for the June FOMC
Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.