CFTC: still getting long of dollars - ANZ

Analysts at ANZ noted the positioning data for the week ending 26 July 2016.

Key Quotes:

"For the week, funds added USD1bn to their net short EUR positions, taking the overall to USD16.4bn, the highest since January 2016.

Meanwhile, funds further increased their net GBP shorts by USD0.4bn to USD5.0bn. This is the eighth consecutive week that funds ran an overall net short GBP position.

Leveraged funds scaled back their net long JPY positions ahead of the 29 July BoJ meeting. Overall net long JPY positions fell by USD0.3bn to USD4.9bn. Given that the BoJ underwhelmed market expectations, we will likely see net long JPY positions nearing their mid-July record levels soon.

Commodity currencies bucked the dollar buying trend. Leveraged funds raised their net CAD and AUD longs by USD0.1bn and USD0.3bn respectively. However, they reduced their net long NZD positions marginally, though overall positioning was little changed from the previous week at USD1.7bn.

EM currencies saw net selling in the week. Funds added to their net short MXN positions (by USD0.13bn to USD0.65bn) and reduced their net long RUB and BRL positions by USD0.02bn and USD0.01bn to USD0.45bn and USD0.63bn respectively this week.

Funds added to their net long UST contracts (to 141,100 contracts) in the run up to the 27 July FOMC meeting. With little indication on the next Fed hike and given the weaker than expected US Q2 GDP print, this position could unwind in the coming weeks."