USD longs pared marginally ahead of FOMC meeting – Deutsche Bank

Research Team at Deutsche Bank, notes that the recent IMM data suggests that speculators have reduced their long dollar exposure marginally, cutting implied USD longs as a fraction of open interest to 12.3% from 12.8% in the previous week.

Key Quotes

“Investors trimmed their net GBP and EUR shorts while keeping net longs in CHF and JPY almost the same. In dollar bloc currencies, investors trimmed their net long exposures in CAD, AUD and NZD. Meanwhile in MXN, investors extended their shorts for the third week.

According to the Traders in Financial Futures report, leveraged funds and asset managers pared their implied dollar long and short exposure respectively. Leveraged funds reduced their net short position in EUR, GBP and CHF. At the same time, asset managers added to their net longs in EUR and net shorts in GBP while in CHF, asset manager positions flipped from net short to net long.

Meanwhile in JPY, both leveraged funds and asset managers extended their net long and net short exposure respectively. In CAD, leverage funds extended their long positions modestly. By contrast, asset managers pared their net long CAD positions aggressively. Both communities reduced their net long positions in AUD while in NZD leveraged funds reduced their longs marginally while asset managers added modestly to their net short positions. In MXN, both leveraged funds and asset managers continue to add to their net short and net long exposures respectively.”