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11 May 2015
Leveraged funds reduced overall net long USD - ANZ
FXStreet (Bali) - The positioning data for the week ending 5 May 2015 in the futures market shows leveraged funds reduced their overall net long USD positioning by USD3.1bn to USD24.4bn in the week, ANZ notes.
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.1bn to USD24.4bn in the week, marking the fourth consecutive week of long USD reductions"
"The reduction in USD long positioning was unsurprising given the much weaker than expected Q1 GDP at 0.2% s.a. qoq annualised."
"The decrease in USD longs was led by GBP (USD2.4bn) and AUD (USD1.9bn)."
"Changes in positioning in both these currencies were likely also influenced by domestic factors."
"For GBP, uncertainty around the 7 May election contributed to weakness in sterling prior to voting."
"Opinion polls before the elections showed that neither of the major parties, either the Conservatives or Labour would win sufficient seats to form a majority at the 7 May election. The change in positioning by leveraged investors, going from net short of USD1.9bn the week before to a net long position of USD0.4bn likely reflected profit taking rather than a punt on the election outcome."
"For AUD, the absence of an explicit easing bias in the RBA statement on 5 May was likely behind the decrease in short positioning."
"Post the widely expected rate cut to 2.0% in the cash rate, the RBA released a statement that dropped an explicit easing bias. The price action post the RBA meeting suggests that the market is convinced the easing cycle is over."
"Looking ahead, greater focus will turn to the EUR as Euro finance ministers assemble in Brussel for the Eurogroup meeting on 11 May to find an agreement between Greece and its lenders."
"Despite the ongoing uncertainty regarding Greece, leverage funds continue to cover their EUR shorts for the sixth consecutive week. Focus will turn to the resolution for Greece in the euro area."
Key Quotes
"Leveraged funds reduced their overall net long USD positioning by USD3.1bn to USD24.4bn in the week, marking the fourth consecutive week of long USD reductions"
"The reduction in USD long positioning was unsurprising given the much weaker than expected Q1 GDP at 0.2% s.a. qoq annualised."
"The decrease in USD longs was led by GBP (USD2.4bn) and AUD (USD1.9bn)."
"Changes in positioning in both these currencies were likely also influenced by domestic factors."
"For GBP, uncertainty around the 7 May election contributed to weakness in sterling prior to voting."
"Opinion polls before the elections showed that neither of the major parties, either the Conservatives or Labour would win sufficient seats to form a majority at the 7 May election. The change in positioning by leveraged investors, going from net short of USD1.9bn the week before to a net long position of USD0.4bn likely reflected profit taking rather than a punt on the election outcome."
"For AUD, the absence of an explicit easing bias in the RBA statement on 5 May was likely behind the decrease in short positioning."
"Post the widely expected rate cut to 2.0% in the cash rate, the RBA released a statement that dropped an explicit easing bias. The price action post the RBA meeting suggests that the market is convinced the easing cycle is over."
"Looking ahead, greater focus will turn to the EUR as Euro finance ministers assemble in Brussel for the Eurogroup meeting on 11 May to find an agreement between Greece and its lenders."
"Despite the ongoing uncertainty regarding Greece, leverage funds continue to cover their EUR shorts for the sixth consecutive week. Focus will turn to the resolution for Greece in the euro area."