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25 Jan 2015
Significant shifts in CHF spec positioning - TDS
FXStreet (Bali) - According to the latest CFTC Commitments of Traders Report, for the week ending Tuesday, January 20th, there were some significant shifts in speculative positioning on net short CHF, following the decision by the SNB to remove the EUR/CHF cap, notes the TDS FX Team.
Key Quotes
"CFTC data for the week ending January 20th reflected some significant shifts in speculative positioning. Investors had recently been building a modest net short position in the CHF and rushed to cover the bulk of that exposure following the shock decision by the SNB to ditch the EURCHF floor on January 15th. The only surprise is perhaps that the IMM data show investors and CTA-type accounts still hold a 9.8k contract net CHF short, even if that is down sharply from the net –26.4k contract position that had accumulated through mid-January. Data also showed some unusually large shifts in he JPY this week, with the net short position of –94.6k contracts seen in the January 13th week cut back to –77.9k contracts."
"Were it not for the changes in CHF and JPY positioning, the main focus of this week’s report would have been the latest jump in net EUR shorts to a new record of –180k contracts (from –167.8k last). As it is, the rise in net EUR shorts (which now equate to a USD26 bn position) was more than offset by long USD liquidation elsewhere (JPY and CHF), leaving the aggregate spec market long USD position versus the major currencies down slightly at USD47.9bn, from USD49bn in the previous week."
"Elsewhere, investors left net AUD positioning little changed at —46.6k contracts and were similarly disinterested in the NZD (little change at –1.8k contracts). Net short CAD positions were lifted to –29k contracts this week though, which is the biggest bet against the CAD since April last year. The timing here looks good considering the CAD’s 2.5% or so slump versus the USD since the close of business Tuesday in the wake of the BoC’s surprise rate cut mid-week."
"Net GBP shorts were lifted to –45.7k contracts, up from –37.1k in the prior week while investors curbed net short MXN positions slightly (-46.2k contracts from –54.3k in the January 13th week)."
Key Quotes
"CFTC data for the week ending January 20th reflected some significant shifts in speculative positioning. Investors had recently been building a modest net short position in the CHF and rushed to cover the bulk of that exposure following the shock decision by the SNB to ditch the EURCHF floor on January 15th. The only surprise is perhaps that the IMM data show investors and CTA-type accounts still hold a 9.8k contract net CHF short, even if that is down sharply from the net –26.4k contract position that had accumulated through mid-January. Data also showed some unusually large shifts in he JPY this week, with the net short position of –94.6k contracts seen in the January 13th week cut back to –77.9k contracts."
"Were it not for the changes in CHF and JPY positioning, the main focus of this week’s report would have been the latest jump in net EUR shorts to a new record of –180k contracts (from –167.8k last). As it is, the rise in net EUR shorts (which now equate to a USD26 bn position) was more than offset by long USD liquidation elsewhere (JPY and CHF), leaving the aggregate spec market long USD position versus the major currencies down slightly at USD47.9bn, from USD49bn in the previous week."
"Elsewhere, investors left net AUD positioning little changed at —46.6k contracts and were similarly disinterested in the NZD (little change at –1.8k contracts). Net short CAD positions were lifted to –29k contracts this week though, which is the biggest bet against the CAD since April last year. The timing here looks good considering the CAD’s 2.5% or so slump versus the USD since the close of business Tuesday in the wake of the BoC’s surprise rate cut mid-week."
"Net GBP shorts were lifted to –45.7k contracts, up from –37.1k in the prior week while investors curbed net short MXN positions slightly (-46.2k contracts from –54.3k in the January 13th week)."