USD longs increased, EUR shorts trimmed - ANZ

According to the CFTC positioning data for the week ending 7 November 2017, leveraged funds raised their net long USD positions by USD3.4bn to USD8.4bn, after turning long in the previous week for the first time since July, notes Irene Cheung, Senior Strategist at ANZ.

Key Quotes

“However, the USD has since eased amid no material progress in tax reform proposals, suggesting some trimming of long USD positions after the CFTC cut-off date.”

“Dollar buying was broad-based except against the EUR. After turning net short EUR in the previous week, leveraged funds trimmed their net EUR shorts by USD0.3bn to USD0.8bn.”

“Leveraged accounts raised their net JPY shorts by USD1.5bn to USD12.6bn, the biggest short position since June 2015 and at near record levels. They also added to their net CHF shorts by USD0.4bn to USD1.5bn. Meanwhile, funds trimmed their net GBP longs by USD0.4bn to USD0.9bn.”

“Commodity currencies saw a combined net selling of USD1.3bn. The bulk was in the CAD, where net longs were pared back by USD0.9bn to USD2.6bn. Long AUD positions were also trimmed by USD0.1bn to USD4.1bn, the least long since last July. Meanwhile, leveraged funds added to their net NZD shorts by USD0.4bn to USD1.1bn, close to the record overall short position of July 2015.”

“EM currencies saw net selling of USD0.1bn. BRL was sold for the fourth consecutive week by a further USD0.2bn to take net BRL longs to USD0.3bn, while MXN and RUB saw small net buying.”

“Leveraged funds extended their net longs in crude oil for the fourth consecutive week to 583k contracts, the biggest long position since last February. They also added to their net longs in 10Y UST, partially reversing the net selling in the previous week as yields moved lower.”