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1 Feb 2016
CFTC: net dollar buying - ANZ
FXStreet (Guatemala) - Analysts at ANZ explained that the USD saw net buying by leveraged funds for the first time in four weeks.
Key Quotes:
"Overall net long positions in USD rose by USD0.6bn to USD24.1bn during the week. Positioning in the ICE US Dollar Index increased by USD0.2bn to USD4.4bn. The net buying of dollars was not broad-based.
JPY and EUR continued to see strong demand from leveraged funds, at the expense of the other major currencies.
Net long positions in JPY rose to their highest level since October 2012 ahead of the BoJ meeting last week. With the BoJ surprising the market by introducing negative interest rates, we would expect to see an unwinding of the net long JPY positions that had been built up over the past few weeks on the back of safe haven demand.
Despite ECB President Mario Draghi hinting at the 21 January meeting that he will ease policy again, EUR saw net buying for the fourth consecutive week. Overall net short positions in EUR have reduced by USD0.7bn to USD12.2bn.
GBP experienced net selling for the sixth consecutive week, with leveraged funds increasing their net short positions by USD0.6bn to USD5.5bn.
Commodity and EM currencies experienced further selling, led by CAD, despite a recovery in oil prices. Net short CAD positions rose by USD0.7bn to USD4.4bn. RUB again bucked the trend with leveraged funds reducing their net short exposure by a small amount."
Key Quotes:
"Overall net long positions in USD rose by USD0.6bn to USD24.1bn during the week. Positioning in the ICE US Dollar Index increased by USD0.2bn to USD4.4bn. The net buying of dollars was not broad-based.
JPY and EUR continued to see strong demand from leveraged funds, at the expense of the other major currencies.
Net long positions in JPY rose to their highest level since October 2012 ahead of the BoJ meeting last week. With the BoJ surprising the market by introducing negative interest rates, we would expect to see an unwinding of the net long JPY positions that had been built up over the past few weeks on the back of safe haven demand.
Despite ECB President Mario Draghi hinting at the 21 January meeting that he will ease policy again, EUR saw net buying for the fourth consecutive week. Overall net short positions in EUR have reduced by USD0.7bn to USD12.2bn.
GBP experienced net selling for the sixth consecutive week, with leveraged funds increasing their net short positions by USD0.6bn to USD5.5bn.
Commodity and EM currencies experienced further selling, led by CAD, despite a recovery in oil prices. Net short CAD positions rose by USD0.7bn to USD4.4bn. RUB again bucked the trend with leveraged funds reducing their net short exposure by a small amount."