Tuesday, November 24, 2015

US Dollar longs grow rapidly - Deutsche Bank

FXStreet (Bali) - Oliver Harvey, Macro strategist, and Robin Winkler, Strategist, both representing Deutsche Bank, note IMM data show that investors increased their long dollar exposure significantly for the fourth consecutive week.

Key Quotes

"As a fraction of open interest, implied USD longs rose to 39% up from 33% in the previous week. This rapid gain in implied USD longs was due to sizeable build-up in net short positions across all the currencies, except NZD."

"Nevertheless, sentiment in NZD deteriorated modestly last week as net longs were trimmed. USD longs now rest at near levels last seen in August, likely suggesting growing confidence that the Fed can achieve lift off in December."

"According to the Traders in Financial Futures report, both leveraged funds and asset managers have significantly extended their implied USD longs."

"Both the communities increased their net shorts in EUR, JPY and AUD. Leveraged funds added large amount of shorts in MXN, while on the other hand the asset managers significantly added to their net longs."

"In GBP, a modest amount of net longs were added by leveraged funds, while asset managers added to their net shorts moderately. Elsewhere, asset managers added to their net shorts in CAD, while leveraged funds marginally trimmed their net shorts."
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