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3 Aug 2015
CAD, MXN shorts continue to increase - Nomura
FXStreet (Bali) - According to the IMM data for the week ended July 28, non-commercial accounts continue to build up shorts in CAD and MXN in particular, notes Nomura's Global FX Strategy Team.
Key Quotes
"MXN shorts, which were already at a record, increased by $0.2bn by Tuesday and another $0.4bn since."
"This brought estimated positioning in MXN to -$3.1bn currently. CAD positioning, while not at an all-time low like MXN, is the most net short since March 2014."
"NZD shorts have started to recede after being build up to a record. Positioning by Friday’s close was estimated at -$0.8bn, suggesting over a third of shorts from two weeks ago have been cut."
"AUD shorts did increase, and rather significantly so, with $0.7bn of selling on the week ended on Tuesday. However, positioning still has not gotten as stretched to the downside as it was even just earlier this year."
GBP shorts were reduced on the week, bringing positioning to -$1.0bn. This is the least short positioning has been since November. Perhaps speculators are uncomfortable holding large positions into next week as there will be a cluster of data and potential for large swings in the currency.
Key Quotes
"MXN shorts, which were already at a record, increased by $0.2bn by Tuesday and another $0.4bn since."
"This brought estimated positioning in MXN to -$3.1bn currently. CAD positioning, while not at an all-time low like MXN, is the most net short since March 2014."
"NZD shorts have started to recede after being build up to a record. Positioning by Friday’s close was estimated at -$0.8bn, suggesting over a third of shorts from two weeks ago have been cut."
"AUD shorts did increase, and rather significantly so, with $0.7bn of selling on the week ended on Tuesday. However, positioning still has not gotten as stretched to the downside as it was even just earlier this year."
GBP shorts were reduced on the week, bringing positioning to -$1.0bn. This is the least short positioning has been since November. Perhaps speculators are uncomfortable holding large positions into next week as there will be a cluster of data and potential for large swings in the currency.