Leveraged funds turned short CAD for the first time since July 2017 - Nomura

In the week ending Tuesday 27 March, leveraged funds turned short CAD for the first time since July 2017 at 44%, notes the research team at Nomura.

Key Quotes

“The 1y high in CAD net-short positioning is 69%, recorded in May. Asset managers remained CAD net-longs, currently at 17%.”

“JPY: Leveraged funds added to long JPY positioning, which now stands at 20% of netlongs. In contrast, asset managers cut long JPY positioning from 28% to 21%.”

“EUR&GBP: Leveraged funds cut EUR net-long positioning slightly to 13% from 15% the previous week. The 1y high for net-longs is 41%, which was reached in January. Sterling net-long positioning remained almost unchanged at 47%.The 1y high in GBP net-long positioning is 59%.”

“USD: Our BIS volume-weighted proxy shows that leveraged funds slightly decreased a net short USD position from 21% to 17%. The short position has been maintained since January 2018.”