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19 May 2014
Specs turn short Euro 1st time in 3 months - BBH
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at BBH, provides a summary of last week's speculative positioning in the CME currency futures, noting the shift to Euro short positions.
Key Quotes
1. The large price swings have been matched by an increase in position adjustments. In the reporting period that ended on May 13, the net speculative euro position swung short for the first time in three months. It was largely a function of stale longs exiting. Almost a quarter of the gross long euro positions were cut (26.3k contracts) to 84.4k, which has now slipped behind the Mexican peso. The gross shorts rose by 8.4k contracts, which, relative to adjustments in recent weeks, is still substantial. The gross short position now stands at 86.6k contracts. This is the largest gross short position.
2. Gross long sterling positions were culled by 12.6k contracts, or about 15%, to 71.2k. The gross shorts were trimmed by 3.7k contracts to 39.4. The net result was the smallest long position since March of 31.8k contracts.
3. The clear pattern during the recent reporting period the was reduction gross long currency positions. The exceptions were the Australian dollar and the Mexican peso. The gross longs rose by 5.3k to 50.1k contracts. This, coupled with a small decline in the gross short position (3.1k to 33.0k contracts), is sufficient to lift the double the net long position to 17.1k contracts, which the largest in a year. The gross long peso position rose 27% to 86.1k contracts. The gross shorts were shaved by 2.3k contracts to 17.5k. This created a net long position of 68.6k contracts, which is the largest since last May.
4. Canada appears to be being pulled away from the other majors and toward the Australian dollar and the Mexican peso. Although the net speculative position is still short Canadian dollars, the gross shorts continue to be trimmed and this leave the net short position of 26k contracts. This is the smallest since last November.
5. The yen was largely sidelined. Gross longs fell by almost 3k contracts and the gross shorts rose by 1.1k contracts to 82.2k. Speculators moved to the sidelines in the Swiss franc, as the net long position was halved to 6.8k contracts, the smallest in two months as both gross long and shorts were pared.
Key Quotes
1. The large price swings have been matched by an increase in position adjustments. In the reporting period that ended on May 13, the net speculative euro position swung short for the first time in three months. It was largely a function of stale longs exiting. Almost a quarter of the gross long euro positions were cut (26.3k contracts) to 84.4k, which has now slipped behind the Mexican peso. The gross shorts rose by 8.4k contracts, which, relative to adjustments in recent weeks, is still substantial. The gross short position now stands at 86.6k contracts. This is the largest gross short position.
2. Gross long sterling positions were culled by 12.6k contracts, or about 15%, to 71.2k. The gross shorts were trimmed by 3.7k contracts to 39.4. The net result was the smallest long position since March of 31.8k contracts.
3. The clear pattern during the recent reporting period the was reduction gross long currency positions. The exceptions were the Australian dollar and the Mexican peso. The gross longs rose by 5.3k to 50.1k contracts. This, coupled with a small decline in the gross short position (3.1k to 33.0k contracts), is sufficient to lift the double the net long position to 17.1k contracts, which the largest in a year. The gross long peso position rose 27% to 86.1k contracts. The gross shorts were shaved by 2.3k contracts to 17.5k. This created a net long position of 68.6k contracts, which is the largest since last May.
4. Canada appears to be being pulled away from the other majors and toward the Australian dollar and the Mexican peso. Although the net speculative position is still short Canadian dollars, the gross shorts continue to be trimmed and this leave the net short position of 26k contracts. This is the smallest since last November.
5. The yen was largely sidelined. Gross longs fell by almost 3k contracts and the gross shorts rose by 1.1k contracts to 82.2k. Speculators moved to the sidelines in the Swiss franc, as the net long position was halved to 6.8k contracts, the smallest in two months as both gross long and shorts were pared.