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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains in range near 1.0600 on Lagarde's speech

EUR/USD remains in range near 1.0600 on Lagarde's speech

EUR/USD is trading close to 1.0600, keeping its recent range on ECB President Christine Lagarde's remarks on Day 2 of the ECB Forum in Sintra. The US dollar struggles amid a positive shift in risk sentiment and firmer yields. US data awaited. 

EUR/USD News

GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD is bouncing back towards 1.2300, capitalizing on the renewed selling in the US dollar across the board. The risk recovery is weighing on the dollar, despite the rebounding Treasury yields. Brexit and UK political woes remain a drag on the pound. US data eyed. 

GBP/USD News

Gold sticks to gains near $1,825, upside potential seems limited

Gold sticks to gains near $1,825, upside potential seems limited

Gold attracted some dip-buying on Tuesday and reversed a part of the overnight sharp retracement slide from the very important 200-day SMA. Gold held on to its modest gains through the early European session and was last seen trading above the $1,825 level.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price hints at signs that it is ready for an explosive second half of the year. Investors can expect Ripple to rally roughly 83% from the current position to $0.639 soon. A daily candlestick close below $0.340 will invalidate the bullish thesis for the remittance token.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures