Asian FX positioning: USD longs still increasing – BNPP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, suggests that investors have increased their long USD/Asia positioning over the past two weeks, especially in USDPHP and USDKRW.

Key Quotes

“We updated our Asian FX positioning indicators6 on 21 January. We highlight the key findings below:

• On an aggregate basis, investors have continued to increase long USD/Asia positions over the past two weeks. Nevertheless, long USD/Asia positioning (at 0.99 on a scale of -3.0 to +3.0) is not yet at an extreme level, in contrast to the situation in August 2015 (when it reached 1.64, see Chart 1). The exception is USDCNH.

• The biggest increase in long USD positioning has been against the PHP (to +1.0, from +0.4 two weeks ago) and the KRW (to +0.54 from +0.23 two weeks ago).

• USDINR has seen a turnaround from a small short to a small long. This is the first flip in positioning since September 2015.

• There has been a slight moderation in long USDTHB positioning (to +0.9, from +1.1) over the past two week.

• Elsewhere, investor positioning in USDCNH, USDTWD, USDIDR and USDSGD is largely unchanged from two weeks ago.

• Investors have also turned slightly long USDINR, the first flip in positioning since September …read more

Source:: FX Street