Fairly muted changes in overall USD specs positioning - ANZ

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - Irene Cheung and HuiYing Chan, FX Strategists at ANZ, reviewed the specs positioning data for the week ending 24 June 2014, noting fairly muted changes in overall USD positions.

Key Quotes

"USD positioning among leveraged funds stayed relatively unchanged as net positioning in the major currency pairs (except CHF) had muted changes. Leveraged accounts turned net short USD to USD1bn from net long USD0.5bn the prior week, possibly post FOMC meeting with Chairman Yellen pledging continued monetary accommodation."

"Net EUR position stayed relatively constant for the second week in a row. Net short positions in EUR/USD reduced slightly by 0.7k contracts (worth USD0.1bn) to 47.4k (USD8.1bn)."

"Net long positioning in GBP stayed elevated, increasing by 2.7k contracts to 121.7k as the market continued to price in a hawkish BOE."

"On a relative basis, net long AUD/NZD positions continued to register a new high since late April 2013 even as leveraged funds restocked their net long positions in NZD as net long positions in AUD increased by more in comparison."

"CHF positioning turned net short again after a one week pause. Net CHF positioning turned net short 5.0k from net long 3.8k the prior week."

"The net long non-commercial position in gold rose by a huge 52k contracts, the largest increase (in contracts terms) in the net position since 2005, and coinciding with a 67USD/oz rise in the gold price during the week. The data show that the change in positioning was not just short-covering, but also the addition of fresh long positions. Gross long positions rose by 30k contracts to 203k, the highest since Dec 2012."

"Net long positioning in the crude oil stayed relatively unchanged after increasing by 39.1k contracts in the prior week, suggesting that investors’ concern over a potential oil price spike from a worsening of tensions in Iraq appears to be contained for now."

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