Research Team at Deutsche Bank, notes that the IMM data suggest that investors extended their implied long USD position modestly and implied USD longs as a percentage of total open interest now stand at 18.4% from 18.2% in the previous week.
“Bearish positions in EUR extended with investors adding to their net shorts. Investors pared their net GBP shorts modestly but net shorts as a percentage of total open interest remain close to the record levels seen in late August. Investors pared their JPY longs considerably while adding significantly to their short position in CHF taking it to levels not seen since early June. Among the dollar bloc currencies, investors pared net shorts in CAD and NZD, while they continue to add to their net long AUD position for straight fourth week. Meanwhile, investors reduced MXN shorts considerably.
Traders in Financial Futures data show that leveraged funds increased their dollar longs significantly, whereas asset managers added to their implied dollar shorts modestly. Leveraged funds continue to be bearish on GBP and EUR extending their short positions modestly in both currencies. By contrast, asset managers extended their net longs in EUR while trimming GBP shorts significantly. In JPY, both leveraged funds and asset managers trimmed their long and short positions respectively.
Sentiment in CHF worsened as leveraged funds extended their net short while asset managers positioning flipped from net long to net short .Among the commodity currencies, both communities extended their net long positions in AUD. Leveraged funds pared net shorts in CAD and net longs in NZD. Meanwhile, asset managers trimmed CAD net longs marginally, while keeping their NZD positioning almost the same. In MXN, leveraged funds cut their net short and asset managers pared net their long positions considerably.”