FXStreet (Guatemala) - ANZ Strategists, Khoon Goh and HuiYing Chan noted that leveraged funds’ net long USD positioning stayed relatively unchanged after the previous week’s sharp increase, rising slightly from USD15.7bn to USD16.1bn.

Key Quotes

"Increases in USD positioning came courtesy of the commodity currencies and MXN, which were offset by declines in positioning against JPY and EUR."

"Net short positioning in the JPY was reduced by 9.5k contracts worth USD1.1bn to 66.9k for an overall short position of USD8.2bn. Part of this likely reflected ongoing geopolitical tensions in Ukraine."

"Among the commodity currencies, AUD had the greatest reduction in net long positioning, likely a result of the surprising rise in the unemployment rate on 7 August. Net long positions fell by 4.0k contracts (worth USD0.4bn) to 33.6k (worth USD3.1bn)."

"Net short positioning in EUR reduced slightly by USD0.5bn after increasing by USD10.0bn in the prior 3 weeks. Total net short positions now stand at USD17.8bn, still a historically high level."

"Net long positions in GBP continue to be reduced for the seventh consecutive week, dragging on the sterling. Leveraged funds still maintain a large net long position in GBP worth USD8.6bn, suggesting potential for a further unwinding of sterling longs. Since the reduction of net long positions in GBP started seven weeks ago, we have seen a reduction of USD4.2bn net long positioning in GBP as GBP/USD declined from 1.71 to 1.67."

"Net long non-commercial positions in gold increased by 32.1k contracts to 166k. Net long positioning in WTI crude oil fell by 20.8k contracts to 328.2k. This is the seventh consecutive weekly decline in oil positioning since it reached historic highs in late June."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center