Leveraged funds extend short positioning in CAD, CHF and AUD - Nomura

Analysts at Nomura offered the leveraged funds and asset managers’ balance breakdown.

Key Quotes:

"CAD: According to IMM data for the week ending 3 January, leveraged funds extended their net short positioning in CAD, from 15% of outstanding contracts last week to 31% in the week ending 3 January. However, this is still below the 61% net shorts seen in mid-November, and the 80% net shorts seen in February 2016 (when oil prices were around their lows). Asset managers also reduced their net long CAD positioning, to 36% from 45.6% in the prior week.

CHF: Leveraged funds increased their net short positioning in CHF, from 40% in the prior week to 52% net shorts. This is approaching the highs seen in mid-December of 65% net short. Asset managers reduced net shorts from 44% in the prior week to 39%.

NZD & AUD: Leveraged funds reduced net long positioning in NZD to 45% of outstanding contracts, from 55% in the prior week. Meanwhile, AUD net short positions were increased further to 17%, having turned net short two weeks ago for the first time since June 2016. Asset managers also increased their net short positioning in AUD to 60%, approaching the levels of 70% seen in January last year.

MXN: Leveraged funds modestly reduced net short positioning in MXN, to 63% from 73% two weeks prior. Asset managers kept their net long MXN positioning relatively unchanged."