US Dollar shorts extended again – Deutsche Bank

IMM data suggest that investors once again extended their short exposure in USD as implied dollar shorts as a fraction of open interest moved to 12% from 11%, notes the research team at Deutsche Bank.

Key Quotes

“By contrast, investors extended their long positioning considerably in both GBP and EUR. Among the safe haven currencies, investors pared their short positioning in CHF while keeping their short JPY exposure unchanged. Among dollar bloc currencies, speculators added to their short exposure in NZD and extended their long positioning in AUD while trimming CAD shorts at the margin. Meanwhile in MXN, investors cut their long exposure by more than a tenth.”

“Traders in Financial Futures data suggest that it was leveraged funds who cut their long USD positioning by two fifths while asset managers pared their shorts by almost a tenth. Meanwhile, leveraged funds once again extended their long positioning in both EUR and GBP. On the other side, asset managers pared their long EUR exposure while trimming their short GBP positioning moderately.”

“Among risk off currencies, leveraged funds cut their bearish JPY exposure while further extending their short positioning in CHF. In contrast, asset managers added to their short JPY exposure while extending downside exposure in CHF. Among commodity currencies, leveraged funds cut their longs in AUD while extending their bullish positioning in CAD by more than a fifth. Asset managers cut their long CAD positioning while extending their downside exposure in AUD. In MXN, both communities held divergent views as leveraged funds cut their longs by almost two fifths while asset managers extended their bullish positioning by more than a quarter.”