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1 Dec 2015
CFTC Spec positioning: funds buying greenback - ANZ
FXStreet (Guatemala) - In respect of the CFTC speculative positioning, Analysts at ANZ explained that for the fifth straight week, leveraged funds have been net buyers of USD.
Key Quotes:
"Overall net long USD positions rose by USD2.9bn in the week to USD34.1bn. In contrast, there was a marginal decline in the ICE US dollar positioning. This could be an indication that leveraged funds prefer expressing dollar views through specific currency pairs as opposed to the DXY.
The increase in USD positioning reflected broad-based net selling in the major currencies, helping to lift the DXY towards the 100 level. The AUD and EM currencies were the only ones to buck the trend and register net buying during the week. The fact that the DXY broke through the psychological 100 level and is closing in on the year’s high after the CFTC cut-off date suggests there was further dollar buying by leveraged funds.
EUR saw the largest net selling worth USD1.1bn, with leveraged funds increasing their overall net short position to USD18.7bn (see Figure 5 in PDF). FX markets are positioned for the ECB to deliver further stimulus at their 3 December meeting.
Both CAD and CHF saw net selling of USD0.7bn each. Lower oil prices were likely behind the CAD selling (see Figure 9 in PDF). Net short positions in CHF is now at their highest since the series began in 2006, and mirrors the move in USD/CHF well.
Leveraged funds are turning more neutral on GBP, reducing their net long positions by USD0.6bn to a mere USD0.3bn.
The net buying in AUD could be due to RBA Glenn Stevens telling markets to ‘chill out’ over Christmas. However, the continued decline in commodity prices look set to pressure positioning in commodity currencies further."
Key Quotes:
"Overall net long USD positions rose by USD2.9bn in the week to USD34.1bn. In contrast, there was a marginal decline in the ICE US dollar positioning. This could be an indication that leveraged funds prefer expressing dollar views through specific currency pairs as opposed to the DXY.
The increase in USD positioning reflected broad-based net selling in the major currencies, helping to lift the DXY towards the 100 level. The AUD and EM currencies were the only ones to buck the trend and register net buying during the week. The fact that the DXY broke through the psychological 100 level and is closing in on the year’s high after the CFTC cut-off date suggests there was further dollar buying by leveraged funds.
EUR saw the largest net selling worth USD1.1bn, with leveraged funds increasing their overall net short position to USD18.7bn (see Figure 5 in PDF). FX markets are positioned for the ECB to deliver further stimulus at their 3 December meeting.
Both CAD and CHF saw net selling of USD0.7bn each. Lower oil prices were likely behind the CAD selling (see Figure 9 in PDF). Net short positions in CHF is now at their highest since the series began in 2006, and mirrors the move in USD/CHF well.
Leveraged funds are turning more neutral on GBP, reducing their net long positions by USD0.6bn to a mere USD0.3bn.
The net buying in AUD could be due to RBA Glenn Stevens telling markets to ‘chill out’ over Christmas. However, the continued decline in commodity prices look set to pressure positioning in commodity currencies further."