USD longs reduced, EUR shorts increased - ANZ

According to the CFTC’s positioning data for the week ending 5 March 2019, leveraged funds were USD sellers for the second straight week, reducing their overall net long dollar positions.

Key Quotes

“Dollar selling was seen across the major G10 currencies except JPY. Asset managers however, were more positive on the dollar.”

“The CFTC data were released prior to the ECB policy meeting, which introduced new stimulus measures and downgraded euro area growth forecasts. We are likely to see an increase in net short EUR positions by leveraged funds at the next set of CFTC data.”

“Growing concerns about global growth should see a rise in safe-haven demand, which will favour JPY.”

“Commodity currencies reported net buying. But weaker-than-expected Australia GDP data and growing calls for RBA rate cuts could see the net AUD buying unwind the following week.”

“Positioning in EMFX was largely mixed with leveraged funds and asset managers taking opposite positions. Net MXN and RUB longs by asset managers are at the 100th percentile.”