Monday, October 19, 2015

CFTC review: Leveraged funds reduce net long USD exposure - ANZ

FXStreet (Bali) - The positioning data for the week ending 13 October 2015, shows leveraged funds reduced their net long USD exposure by USD1.6bn to USD15.6bn.

Key Quotes

"The selling of dollars was also reflected in the reduction in non-commercial ICE DXY positions by USD0.7bn to USD3.68bn (see Figure 4 in PDF). The release of the FOMC Minutes on 9 October, which was read as dovish by the market, contributed to the dollar selling, as expectations of Fed rate hikes were further delayed."

"The dollar selling was broad-based, with only GBP going against the trend. Leveraged funds pared back their net long GBP positions by USD0.7bn to USD1.0bn (see Figure 7 in PDF). A slightly weaker CPI print may have been a factor behind the reduction in the GBP’s positioning."

"Commodity currencies recorded solid net buying for the second consecutive week, totalling USD1.0bn following on from the USD0.8bn net buying the week before (see Figure 13 in PDF). CAD led the charge with leverage funds reducing their overall net short position by USD0.8bn to USD2.5bn. AUD saw its net short position reduced by USD0.2bn to USD1.7bn, while NZD saw a marginal decline in its net short positions by USD0.1bn to USD0.5bn."

"There was net buying of EUR and JPY by a combined USD1.0bn, but leveraged funds maintain overall net short positions in those two currencies (USD7.6bn for EUR and USD3.4bn for JPY)."

"The dollar weakness was not confined to the G10 currencies. Emerging market currencies also recorded net buying of USD0.1bn, though this was substantially lower than the USD1.3bn net buying seen in the previous week (see Figure 14 in PDF). Leveraged funds turned net long MXN last week for the first time since April, and have maintained their long exposure. Leveraged funds are also close to going neutral in their exposure to RUB."
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