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18 May 2015
Another reduction in net long USD position - ANZ
FXStreet (Bali) - The positioning data for the week ending 12 May 2015 shows leveraged funds reduced their overall net long USD positioning by USD3.3bn to USD21.0bn, notes the ANZ Research Team.
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.3bn to USD21.0bn in the week, marking the fifth consecutive week of long USD reductions."
"The reduction in USD positioning was unsurprising given the weaker than expected non-farm payroll numbers. Cumulatively, there has been a reduction of USD14.6bn of long USD positioning in the last five weeks."
"The decrease in USD longs was across the board with the exception of NZD, led by EUR (USD1.3bn)."
"Changes in positioning for the week were likely also influenced by domestic factors."
"For EUR, Greece’s loan repayment of EUR750m to the IMF on 12 May was likely behind the decline in net short positioning."
"In an unusual move, Greece drew on its reserve account at the IMF to make the loan repayment. The move allowed the country a few more weeks to reach a deal with creditors on fresh financing."
"For NZD, net selling was likely prompted by continued dovish sentiment towards the RBNZ."
"The increasing prospect of OCR cuts is expected to keep downward pressure on the NZD in the coming weeks."
"Looking ahead, net long positioning in USD is likely to see further reductions due to a string of disappointing US data."
"Weak retail sales, a lower PPI, negative industrial production growth and a disappointing University of Michigan consumer sentiment index have sent the DXY lower."
H"ence, we will likely see another reduction in net long USD position in the next CFTC report."
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.3bn to USD21.0bn in the week, marking the fifth consecutive week of long USD reductions."
"The reduction in USD positioning was unsurprising given the weaker than expected non-farm payroll numbers. Cumulatively, there has been a reduction of USD14.6bn of long USD positioning in the last five weeks."
"The decrease in USD longs was across the board with the exception of NZD, led by EUR (USD1.3bn)."
"Changes in positioning for the week were likely also influenced by domestic factors."
"For EUR, Greece’s loan repayment of EUR750m to the IMF on 12 May was likely behind the decline in net short positioning."
"In an unusual move, Greece drew on its reserve account at the IMF to make the loan repayment. The move allowed the country a few more weeks to reach a deal with creditors on fresh financing."
"For NZD, net selling was likely prompted by continued dovish sentiment towards the RBNZ."
"The increasing prospect of OCR cuts is expected to keep downward pressure on the NZD in the coming weeks."
"Looking ahead, net long positioning in USD is likely to see further reductions due to a string of disappointing US data."
"Weak retail sales, a lower PPI, negative industrial production growth and a disappointing University of Michigan consumer sentiment index have sent the DXY lower."
H"ence, we will likely see another reduction in net long USD position in the next CFTC report."