CFTC Specs positioning weekly summary – ANZ

By FXStreet FXStreet (Bali) – Irene Cheung, FX Strategist at ANZ Research, summarizes the the positioning data is for the week ending 5 January 2016, noting that leveraged funds reduced long USD positions (against other majors) for the first time in three weeks.

Key Quotes

“For the week ended 5 January, leveraged funds reduced long USD positions (against other majors) for the first time in three weeks, by USD1.5bn to USD26.2bn. Concerns over China, the start of sharp yuan depreciation, and tension in the Middle East contributed to risk aversion and reductions in risk positions. However, for those who wanted direct exposure to the DXY, long USD positions continued to be added during the week.”

“Price action since then suggests long USD positions against the majors may have been trimmed further in a risk-off mode amid a global stock market sell-off, continued yuan depreciation, and a slump in oil prices. Direct bullish bets in the DXY should have been reduced as well.”

“During the week, leveraged accounts trimmed net EUR shorts by USD0.8bn to USD16bn after two weeks of increases as risk positions were taken out.”

“Leveraged accounts also continued to pare back in their net short JPY positions by another USD2bn to USD2.6bn, the least since …read more

Source:: FX Street