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Forex pairs in this Article » EUR/USD, USD/JPY
FXStreet (Bali) - According to the latest CFTC data for the week (through February 11th), limited changes in speculative positioning were observed, notes Shaun Osborne, Chief FX Strategist at TDS.

Key Quotes

"Investors cut back the aggregate exposure to the USD to the tune of USD 1.5bn in the week (to total ISD19.4 bn versus the major currencies) which is broadly in line with recent trends."

"Net EUR short covering was a clear feature of this week’s data, with the relatively small net short of -13.6k contracts established last week trimmed back to an even smaller net short of –6.9k contracts this week. Net positioning here has slip-flopped either side of long/short for the past few weeks, reflecting the absence of a clear trend in the EUR recently."

"Net GBP long positions were little changed (+10.6k contracts, from +10.9k last) and net long CHF positions were cut to just +555 from +2.2k in the previous week.

"Net JPY shorts extended modestly this week to –78.7k contracts from –76.8k in the week through February 4th but the change was very limited and the overall trend towards reducing net JPY shorts—which peaked at –143.8k contracts in the December 24th week—remains intact."

"Investors have been slowly reducing net short AUD exposure in recent weeks as the currency recovered from the weakness seen earlier in January. Net short-covering extended a little more aggressively this week, cutting the position to –47.4k contracts from –55.5k in the prior week. Net positioning in the CAD (-58.9k contracts) and the Kiwi (+7.6k) were more or less unchanged on the week."

"Investors remain wary of EM FX volatility and have sustained a relatively decent net short MXN exposure since the end of January. The position remained a lofty –33.9k contracts in the latest week. For the sake of comparison, the IMM was wearing a net long peso position equivalent to 124.5k contracts at this point last year."

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