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4 Nov 2013
Flash: CFTC indicates specs kept decreasing exposure on USD - TDS
FXstreet.com (Barcelona) - The CFTC published additional pending reports last Friday, with delays due to the US government shutdown in October. According to TDS, data for the weeks through Oct 15th and 22nd indicates that currency speculators decreased its exposure to the USD, with implied USD net shorts of USD5.0bn from USD2.6bn the week before.
Key Quotes
"The large net long position in the EUR was trimmed slightly in the week through the 15th to 60k contracts (from 69k), but by the 22nd had expanded to 72k—the largest net long since May 2011. This reaffirms our suspicion that EUR positioning remained very one-sided through late October, a situation that has ultimately resulted in sharp long liquidation in recent days."
"JPY shorts re-emerged through the 15th and 22nd after notably shrinking earlier in the month. As of the 22nd the net short position had expanded to 72k contracts—close to the extremes we’ve seen since the beginning of the year."
"Among the commodity currencies, positioning changes were choppy, but the overall biases were unchanged. Investors continued to prefer NZD exposure, adding to net long positions over the two weeks (12.7k on the 15th, and 13.1k on the 22nd). At the same time, investors remained overall more bearish on the AUD and the CAD, with AUD net shorts still quite notable at 32.2k as of the 15th and 22.1k on the 22nd. CAD net shorts stood at 10.8k as of the 15th and 5.4k on the 22nd."
"Position changes among the other majors have been much more subdued, with the net long GBP position rising modestly over the two weeks to 12k contracts (Oct. 15), then 14k contracts (Oct. 22)."
Key Quotes
"The large net long position in the EUR was trimmed slightly in the week through the 15th to 60k contracts (from 69k), but by the 22nd had expanded to 72k—the largest net long since May 2011. This reaffirms our suspicion that EUR positioning remained very one-sided through late October, a situation that has ultimately resulted in sharp long liquidation in recent days."
"JPY shorts re-emerged through the 15th and 22nd after notably shrinking earlier in the month. As of the 22nd the net short position had expanded to 72k contracts—close to the extremes we’ve seen since the beginning of the year."
"Among the commodity currencies, positioning changes were choppy, but the overall biases were unchanged. Investors continued to prefer NZD exposure, adding to net long positions over the two weeks (12.7k on the 15th, and 13.1k on the 22nd). At the same time, investors remained overall more bearish on the AUD and the CAD, with AUD net shorts still quite notable at 32.2k as of the 15th and 22.1k on the 22nd. CAD net shorts stood at 10.8k as of the 15th and 5.4k on the 22nd."
"Position changes among the other majors have been much more subdued, with the net long GBP position rising modestly over the two weeks to 12k contracts (Oct. 15), then 14k contracts (Oct. 22)."