CFTC positioning data: funds staying USD short - ANZ

Analysts at ANZ noted that leveraged funds stayed short in the USD for the third consecutive week.

Key Quotes:

"During the week, they added USD0.8bn to their net USD short position to take it to USD3.7bn. DXY has since rebounded slightly following Friday’s release of better-than-expected US retail sales for April.

Leveraged accounts trimmed their net short positions in both the EUR and GBP, while also reducing their net longs in JPY. Thus, overall positioning lightened up.

Net short EUR positions against the USD were reduced by USD0.5bn to USD3.9bn, the smallest in eleven weeks. Leveraged funds also pared back in their net short GBP positions for the third consecutive week by USD1.2bn to USD0.4bn – the smallest since last December.

Speculative accounts reduced their net JPY longs against the USD for the second consecutive week by a further USD0.2bn to USD3.2bn, the lowest in ten weeks.

In response to the RBA’s downgrade of inflation outlook, speculative funds took out USD1bn of net AUD longs to USD2.8bn, the lowest net AUD longs in four weeks. Price action post the cut-off date suggests a further pare-back in net long AUD positions.

Leveraged accounts however added a small USD0.1bn to their net NZD longs to USD0.9bn while raising their net CAD longs by a further USD0.4bn to USD1.1bn.

On EM currencies, leveraged funds remained long in the BRL (USD0.5bn) and RUB (USD0.2bn) with little changes in net positioning. However, they turned net short in the MXN again with a net short of USD0.6bn, reversing net buying in the previous week."