CFTC: Net long USD lowest since July 2014 – ANZ

By FXStreet FXStreet (Bali) – Khoon Goh, Senior FX Strategist at ANZ, breaks down the positioning data for the week ending 20 October 2015, noting that net long USD positions were reduced to their lowest level since July 2014.

Key Quotes

“Net long USD positions were reduced to their lowest level since July 2014 by leveraged funds. They net sold USD4.6bn to take their overall net long positioning to USD11.0bn (see Figure 3 in PDF). There was also a reduction in non-commercial ICE DXY positions by USD1.0bn to USD2.7bn.”

“The dollar selling was once again broad-based. Unlike the previous week though, where GBP saw net selling, this time leveraged funds increased their net long GBP positions by USD1.4bn to USD2.5bn.”

“This time it was the AUD’s turn to buck the trend, with net selling of USD0.1bn, taking leveraged funds’ overall net short position in AUD to USD1.8bn (see Figure 10 in PDF). We suspect the AUD selling was on the back of one of the major Australian banks (Westpac) announcing an increase in its mortgage rates, which prompted the market to price in a higher chance of an RBA rate cut.”

“Net short EUR positions were reduced by USD1.5bn to USD6.1bn ahead of the ECB meeting …read more

Source:: FX Street