23 Jun 2014
Three significant adjustments in the latest CFTF report - BBH
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at BBH, takes note of the latest changes on the speculative positioning in the futures market.
Key Quotes
"There were three significant position adjustments in the latest Commitment of Traders report for the week ending June 17. The gross short euro positions were extended by 12.3k contracts to 113.2k. However, the net position changed by about 4.6k contracts because, it appears that new buyers came in when the $1.35 spot level help. The gross longs rose by 7.7k contracts to 51.4k contracts. Sterling bulls have been emboldened by the more hawkish commentary from the BOE and the gross longs rose by 15.2k to 100.4k contracts. This is the largest gross long position in seven years. The gross long peso position was cut by 15.3k contracts to 91.2k, putting it in second place behind sterling for the largest gross long positions."
"The net speculative position in the Swiss franc swung back to the long side for the first time since late May. It was a product of new gross longs being established (5.7k contracts), perhaps encouraged by ideas negative rate by the ECB will see franc test its ceiling. Frankly, switch back to net long position is also a product of the general light participation (small numbers). "
"A combination of an almost 50% increase in gross long yen positions (to 17.8k contracts) and a paring of gross short positions (-8.2k contracts to almost just below 86k) stopped the four-week streak during which the net short yen position rose. At 68.0k contracts, it is the smallest net yen position in a month."
"In the US Treasury market, neither bull nor bear seemed inspired. The gross long position was trimmed by 6.2k contracts to 365.7k. The change was little more than a rounding error. The gross short position grew by 7.7k to to 451.6k contracts, which is also too small to read much of a signal. Over the CFTC reporting period, the price of the September 10-year note futures changed by five ticks."
Key Quotes
"There were three significant position adjustments in the latest Commitment of Traders report for the week ending June 17. The gross short euro positions were extended by 12.3k contracts to 113.2k. However, the net position changed by about 4.6k contracts because, it appears that new buyers came in when the $1.35 spot level help. The gross longs rose by 7.7k contracts to 51.4k contracts. Sterling bulls have been emboldened by the more hawkish commentary from the BOE and the gross longs rose by 15.2k to 100.4k contracts. This is the largest gross long position in seven years. The gross long peso position was cut by 15.3k contracts to 91.2k, putting it in second place behind sterling for the largest gross long positions."
"The net speculative position in the Swiss franc swung back to the long side for the first time since late May. It was a product of new gross longs being established (5.7k contracts), perhaps encouraged by ideas negative rate by the ECB will see franc test its ceiling. Frankly, switch back to net long position is also a product of the general light participation (small numbers). "
"A combination of an almost 50% increase in gross long yen positions (to 17.8k contracts) and a paring of gross short positions (-8.2k contracts to almost just below 86k) stopped the four-week streak during which the net short yen position rose. At 68.0k contracts, it is the smallest net yen position in a month."
"In the US Treasury market, neither bull nor bear seemed inspired. The gross long position was trimmed by 6.2k contracts to 365.7k. The change was little more than a rounding error. The gross short position grew by 7.7k to to 451.6k contracts, which is also too small to read much of a signal. Over the CFTC reporting period, the price of the September 10-year note futures changed by five ticks."