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Position reductions in USD and EUR – Nomura

FXStreet (Barcelona) - David Fritz and Jens Nordvig, Research Analysts at Nomura note that for the week ended December 9, non-commercial accounts sold $4.9bn of USD and bought $3.4bn of EUR which brought USD positioning off of its all-time high (from two weeks ago) and pulled EUR positioning further away from its local lows.

Key Quotes

“Specs sold $4.9bn of USD on the week ended Tuesday, bringing USD net longs to $47.4bn. This is the least net long USD has been since the week ended October 21. However, we estimate that non-commercial accounts bought $1.6bn of USD since.”

“EUR was bought to the tune of $3.4bn on the week. This brought EUR positioning to -$21.2bn, which is the least net short EUR has been since the week ended August 12.”

“MXN net shorts increased with $0.2bn of selling on the week. We estimate a further $0.5bn was sold since Tuesday. Positioning was -$1.7bn as of Tuesday, and we estimate it is closer to -$2.2bn currently. The all-time low in MXN positioning was -$1.8bn set in May 2004.”

“GBP positioning was brought off of YTD lows as well with $0.7bn of buying. This brought total GBP positioning to -$2.3bn as of Tuesday.”

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