USD longs reduce by one third - DB

FXStreet (Barcelona) - Daniel Brehon, Strategist at Deutsche Bank, shares the FX positioning data as of 24th March, commenting that dovish Fed led to USD long positions being reduced by one third.

Key Quotes

“Dollar longs reduced by one third as dovish FOMC causes USD bulls to worry. Currency positioning liquidation was evident this week as a dovish Fed meeting (in which NAIRU estimates were reduced) led to broad based dollar long squaring.”

“Investors are sticking with euro shorts for now despite the wild price action but sterling shorts have less conviction for now.”

“Spot correlation with positioning has decreased in the past several weeks as currency investors step back to wait for better levels.”