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16 Jun 2013
Flash: IMM data reflects sharp reduction in USD - TDS
FXstreet.com (Barcelona) - In an article published after the NY close last Friday, TDS Research Team points at the string reduction of USD aggregate positioning in the week through June 11.
As TDS Research Team notes: "Investors reduced their bullish bet on the USD by a total of USD 10 bn in the latest week, effectively reversing the entire build up of aggregate net long positioning that had accumulated over the past month."
The short covering in the EUR was especially pronounced, TDS Researchers point, as bets towards an early QE taper in the US got scaled back. Net short exposure in the Euro was cut back to just 7.5k contracts overall, "a big reduction relative to last week’s net short of 51.6k contracts and the net short of 84.6k contracts seen just two weeks ago." Interestingly, the latest reduction in net short EUR position means the smallest since late 2012.
Looking at the Net short JPY positioning, TDS Research Team speculates it may be the next shoe to drop, as speculators "trimmed their net short exposure by 10k contracts over the week through Tuesday to just under 73k contracts" it comments. TDS Researchers add that "since position remains relatively large and the JPY has strengthened further this week, the short JPY squeeze looks to have a bit more room to go."
As TDS Research Team notes: "Investors reduced their bullish bet on the USD by a total of USD 10 bn in the latest week, effectively reversing the entire build up of aggregate net long positioning that had accumulated over the past month."
The short covering in the EUR was especially pronounced, TDS Researchers point, as bets towards an early QE taper in the US got scaled back. Net short exposure in the Euro was cut back to just 7.5k contracts overall, "a big reduction relative to last week’s net short of 51.6k contracts and the net short of 84.6k contracts seen just two weeks ago." Interestingly, the latest reduction in net short EUR position means the smallest since late 2012.
Looking at the Net short JPY positioning, TDS Research Team speculates it may be the next shoe to drop, as speculators "trimmed their net short exposure by 10k contracts over the week through Tuesday to just under 73k contracts" it comments. TDS Researchers add that "since position remains relatively large and the JPY has strengthened further this week, the short JPY squeeze looks to have a bit more room to go."