JPY positioning turned negative for the first time this year – Deutsche Bank

Research Team at Deutsche Bank, lists down the latest IMM commitment of traders report.

Key Quotes

“Investors increased their bullish sentiment on the US dollar yet again to reach the highest level since Feb. Implied USD longs as a fraction of open interest rose 2.7% to 25.6%. Investors reversed JPY net longs for the first time since January to record a net short position, whereas CHF net shorts were extended moderately. GBP net shorts were added to while EUR net shorts were pared at the margin. In the dollar bloc, investors maintained their bearish view as AUD net longs were aggressively pared by up to a third, albeit from a high level, and NZD net shorts were extended marginally over the past week. CAD net shorts were also modestly extended ahead of the BoC meeting this week. Investors were more bearish on MXN as they added decent amount of gross shorts.” 

“Traders in Financial Futures data show that leveraged funds reinforced their bullish view as they increased their implied USD longs by 5% of their total open interest, while asset managers more than doubled their implied USD long exposure. In EUR, leveraged funds were more bearish as their net shorts were extended significantly, whereas asset managers increased their bullish exposure modestly. Both the communities were bearish GBP and CHF as they extended their net short position. Sentiment in JPY worsened further as leveraged funds posted net shorts for a second consecutive week since Jan2016 whereas asset managers doubled their net short exposure over the week. Investor sentiment in AUD deteriorated further as leveraged funds cut their net longs by almost half once more, whereas asset managers added to their net shorts for the second time this year. NZD net longs held by leveraged funds were cut moderately while asset managers trimmed their net shorts at the margin. In CAD, leveraged funds cut their net shorts while asset managers reduced their net longs. Elsewhere, in MXN, leveraged funds added to their net shorts while asset managers pared their net longs modestly.”