Dollar bulls on exit mode, long positions down considerably – Deutsche Bank
By FXStreet FXStreet (Delhi): Research Team at Deutsche Bank, note that the global investors continued to liquidate their USD long positions, marking it the fourth consecutive week when the dollar exposure was cut.
Key Quotes
“Investors continued to liquidate USD longs at a rapid rate reducing their long dollar exposure for the fourth consecutive week, taking implied USD longs as a fraction of open interest to 42.5% from 44% in the previous week.”
“Bearish sentiment across most of the currencies improved over the latest week with the exception of EUR, GBP and NZD. Net shorts in JPY have been pared considerably due to short covering in the currency. Net position in GBP flipped to net shorts from net long over the latest week.”
“Traders in financial futures data show that leveraged funds have cut down implied USD longs significantly, whereas asset managers have added USD longs. Large amount of net shorts were reduced in JPY by the leveraged funds community whereas asset managers added decent amount of gross shorts to extend their net shorts position.”
“In GBP, a significant portion on net longs was pared by leveraged funds, while asset managers added net shorts moderately. Meanwhile, asset managers’ position in CAD flipped to net longs from …read more
Source:: FX Street
