GBP longs added to after Mansion House - Nomura

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - Specs piled on longs the Sterling after BoE's Carney hawkish speech last week, note Nomura FX Strategists, who reviewed the latest changes on the futures market positioning.

Key Quotes

"For the week ended June 17, non-commercial accounts added $1.8bn of GBP longs, the most of any currency during the week. As the week included the Mansion House speech by Carney, it was unsurprising to see GBP longs added to after the hawkish comments and repricing of rate hike expectations."

"Specs bought $1.8bn of GBP, bringing net longs to $5.6bn by Tuesday and we estimate to $5.8bn by Friday‟s close. This is the most net long GBP has been since late 2007."

"JPY was bought on the week as well, to the tune of $1.7bn. This brought JPY positioning back to -$8.3bn from -$10.0bn. While overall the market reaction was muted to the unchanged pace of BOJ easing during this past week, this reduction of net shorts suggests that non-commercial accounts had been positioned for more."

"NZD positioning fell sharply during the week, falling to $0.3bn from $1.4bn. Specs similarly sold $0.8bn of MXN while buying $0.9bn of CHF, perhaps indicating a shift in speculators‟ carry trade positions."

"EUR continued to get more net short (to -$10.5bn) after $0.8bn of selling on the week, although we estimate $0.6bn was bought back between Tuesday and Friday."

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