USD longs extended; GBP shorts pared again – Deutsche Bank

Research Team at Deutsche Bank, notes that IMM data suggests that investors have extended their long dollar exposure for the first time since early August after reducing it for four consecutive weeks.

Key Quotes

“This took USD implied longs as a fraction of total open interest to 12.8% from 7.4% in previous week. Sentiment in GBP continued to improve as investors pared their net GBP shorts while in EUR investors turned further bearish adding to their net short EUR position.

Investors turned less bullish on safe haven currencies paring their JPY net longs marginally while cutting their net long CHF exposure significantly. Meanwhile net long exposures in AUD and CAD were pared modestly. Elsewhere in NZD and MXN, investors extended their net long and net short positions, respectively.

Traders in Financial Futures data show leveraged funds have added to their dollar longs significantly while asset managers have extended their net dollar short exposure considerably. Leveraged funds added to their EUR and CHF shorts while asset managers trimmed their net long EUR positions, keeping CHF positioning almost the same. Both the communities pared their net short GBP positioning modestly.

In JPY, leveraged funds cut their long exposure while asset managers scaled back their net short positions marginally. Both communities extended their net longs in AUD while in NZD, leveraged funds added to their positions marginally. At the same time, asset managers pared their short NZD position modestly. In MXN, both leveraged funds and asset managers added significantly to their net short and net long positions respectively.”