1 Jul 2013
Flash: CAD Shorts and MXN Longs Reduced - Nomura
FXstreet.com (London) - Nomura strategists have taken a look at Friday´s COT positioning data, and note that the main story was in the reduction of CAD shorts and MXN longs.
They begin by noting that positioning changes were fairly muted last week, as the FOMC on Wednesday moved market direction and sentiment. Surprisingly, they feel that there was a small amount of USD selling this week, though their real time indicator shows it has largely been reversed since Tuesday. They note that the large flow came in CAD, where shorts were cut by $1.5bn, taking the overall position to -$1.0bn. They write, “We continue to like short CAD exposure, and the reduced positions are a positive factor, in our view.” Elsewhere, they add that EUR long positions were reduced slightly, though remained net long at $2.8bn down by $0.5bn this week, while JPY shorts were also marginally lower at -$7.9bn, and AUD shorts were cut slightly as well to -$5.7bn. They finish by commenting, “Our real time indicator did not show any significant change in these currencies.”
They begin by noting that positioning changes were fairly muted last week, as the FOMC on Wednesday moved market direction and sentiment. Surprisingly, they feel that there was a small amount of USD selling this week, though their real time indicator shows it has largely been reversed since Tuesday. They note that the large flow came in CAD, where shorts were cut by $1.5bn, taking the overall position to -$1.0bn. They write, “We continue to like short CAD exposure, and the reduced positions are a positive factor, in our view.” Elsewhere, they add that EUR long positions were reduced slightly, though remained net long at $2.8bn down by $0.5bn this week, while JPY shorts were also marginally lower at -$7.9bn, and AUD shorts were cut slightly as well to -$5.7bn. They finish by commenting, “Our real time indicator did not show any significant change in these currencies.”