NET USD LONG POSITION CUT TO LOWEST SINCE OCTOBER
Data in this report cover up to Tuesday Feb 9 & were released Friday Feb 12.
• IMM posioning for the week through Tuesday February 9th reﬂected a further, signiﬁcant moderaon in the well‐established USD‐bullish bias amongst hedge funds and CTA‐type investors. The aggregate net USD long posion fell to just under USD14.5bn, the lowest since mid October as investors appear to be reducing risk and seeking safe‐havens.
• The most signiﬁcant change in FX posioning was the reducon in net EUR short posions. Notwithstanding expectaons of addional ECB easing in March, net EUR shorts fell by nearly USD3bn, more than 20k contracts, to USD8.9bn (63.3k contracts), reﬂecng long accumulaon as well as shortcovering. This is the least bearish “view” that market has had on the EUR since mid‐October.
• Net JPY longs increased by a lile over USD800mn in the week, sustaining investors’ obvious interest in this safe‐haven play a lile below the recent (January 26th) peak as shorts connued to cover. The other (related) stand out feature of this report, meanwhile, is the signiﬁcant advance in net gold longs (nearly USD3.5bn) as speculave accounts seek safety and chase bullish price acon.
• Elsewhere, the net short CAD posion remained lile changed and surprisingly robust (the second largest FX exposure aer the EUR for this market). Both gross CAD shorts and longs connue to decline, suggesng a degree of uncertainty about the CAD outlook in the market. Meanwhile, investors cut back net AUD shorts dramacally (by nearly USD1.5bn or around 20k contracts) to the least bearish posion here since June last year.