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18 May 2015
Observations from the latest speculative positioning - BBH
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at BBH, shares his observations from the latest speculative positioning in the futures market, noting that there were four gross speculative position adjustments in the Commitment of Traders reporting week ending May 12.
Key Quotes
"There were four gross speculative position adjustments in the Commitment of Traders reporting week ending May 12. The gross short euro position was reduced by 17.9k contracts. It was the third consecutive decline. It stands at 222.4k contracts now, almost a 50k reduction since peaking in late-March."
"The gross short yen position was cut by 11.6k contracts, about three-quarters of what was added in the prior week. There are still 61.4k short contracts in speculative hands. Both the gross long and short Mexican peso positions were adjusted by 10k contracts or more. The longs grew by 10k contracts to 34k, while the gross shorts were cut by 13.1k contracts, leaving 61.1k."
"The clear pattern among speculators was to reduce gross short currency futures positions. The only exception was sterling, where the short position rose by 9.2k contracts to 68.3. The gross short sterling position in the second largest behind the euro. It is rather surprising given the post-election euphoria. The gross longs were mixed, with euros, yen, and Canadian dollars pared. However, these position adjustments paled in comparison to the changes of the gross shorts."
"Speculators extended the Swiss franc and Australian dollars net long positions. In both cases, it was more a reflection of shorts covering than new longs being establish."
"The net long speculative light sweet crude oil position as shaved by 5.5k contracts to 320.2k. Longs were cut by 18.3k contracts (to 512.4k), and the shorts were cut by 12.8 contracts (to 192.2k)."
"The net short speculative position in 10-year US Treasury note futures was cut by 51k contracts to 132k. This was a function of 9,6k contract build of the gross long position to 319.1k and a nearly 10% drop (41.1k contracts) in the gross short position, leaving 451.5k contracts."
Key Quotes
"There were four gross speculative position adjustments in the Commitment of Traders reporting week ending May 12. The gross short euro position was reduced by 17.9k contracts. It was the third consecutive decline. It stands at 222.4k contracts now, almost a 50k reduction since peaking in late-March."
"The gross short yen position was cut by 11.6k contracts, about three-quarters of what was added in the prior week. There are still 61.4k short contracts in speculative hands. Both the gross long and short Mexican peso positions were adjusted by 10k contracts or more. The longs grew by 10k contracts to 34k, while the gross shorts were cut by 13.1k contracts, leaving 61.1k."
"The clear pattern among speculators was to reduce gross short currency futures positions. The only exception was sterling, where the short position rose by 9.2k contracts to 68.3. The gross short sterling position in the second largest behind the euro. It is rather surprising given the post-election euphoria. The gross longs were mixed, with euros, yen, and Canadian dollars pared. However, these position adjustments paled in comparison to the changes of the gross shorts."
"Speculators extended the Swiss franc and Australian dollars net long positions. In both cases, it was more a reflection of shorts covering than new longs being establish."
"The net long speculative light sweet crude oil position as shaved by 5.5k contracts to 320.2k. Longs were cut by 18.3k contracts (to 512.4k), and the shorts were cut by 12.8 contracts (to 192.2k)."
"The net short speculative position in 10-year US Treasury note futures was cut by 51k contracts to 132k. This was a function of 9,6k contract build of the gross long position to 319.1k and a nearly 10% drop (41.1k contracts) in the gross short position, leaving 451.5k contracts."