USD longs pared, JPY shorts extended - ANZ

According to the CFTC’s positioning data for the week ending 9 April 2019, leveraged funds sold USD for the first time in five weeks, paring their net USD longs.

Key Quotes

“Asset managers bought USD, trimming their net USD shorts for the second week. Post the CFTC data’s cut-off date, USD fluctuated but finally gave way on dovish FOMC minutes and improving data from China. We expect USD positioning to continue to mirror the risk mood, guided by incoming economic data and earnings releases in the US.”

“Both funds and asset managers bought EUR and GBP, while extending their net shorts in JPY. Beyond the cut-off date, despite a dovish ECB, EUR/USD edges up as the USD weakens. Meanwhile, GBP continues to gyrate on Brexit developments, with the JPY trading on broad risk sentiment.”

“Commodity currencies were where funds and money managers acted in opposite directions. Funds trimmed their net shorts in commodity FX for the third successive week, with buying of CAD and NZD. However, money managers extended their net shorts for the second week, selling CAD and NZD while buying AUD. On EMFX, funds raised their net longs, led by MXN and RUB. Asset managers bought MXN but sold RUB, while remaining close to extreme long in the two currencies.”