Leveraged funds turned short EUR for first time since December - Nomura

In the week ending 1 May, leveraged funds’ positioning turned short EUR for the first time since late December 2017, though significantly small at only 0.1%, points out the research team at Nomura.

Key Quotes

“In contrast, asset managers continued to hold on to EUR longs, now at 54% of outstanding contracts.”

“AUD & CAD: Leveraged funds scaled up net long AUD positions to 20% of outstanding contracts (17% in the prior week). This is still a long way from the one-year high of 80% net longs reached in late September 2017. On the contrary, CAD shorts were extended to 61% from 47% the previous week. The one-year high of CAD short positioning is 69%, recorded in late May 2017.”

“GBP: Leveraged funds’ GBP net long positions fell again, to 38% from 57% the previous week. The one-year high is 58% of net longs, reached in early April. On the other hand, asset managers cut their net short positions from 28% to 1%.”

“JPY: Leveraged funds continued to scale back net longs to 7% (13% in the prior week). Asset managers also reduced their longs to 33%, from 35%.”