USD longs extended - ANZ

According to the CFTC’c positioning data for the week ending 30 April 2019, both leveraged funds and asset managers were net USD buyers, notes the research team at ANZ.

Key Quotes

“Ahead of the FOMC meeting, funds extended their USD longs while asset managers reduced their USD shorts. Post the CFTC cut-off date, USD gyrated, gaining ground after the FOMC meeting but retreating on soft wage growth reported on Friday. Apart from incoming data, the Fed’s view on the economy and inflation will be key drivers of USD positioning.”

“USD buying by funds was broad based, against the EUR, GBP and CHF. Asset managers bought USD against the GBP, JPY and CHF. Data from the euro area have seen some improvement lately, but the broad USD picture will remain a key driver.”

“Both funds and money managers were net sellers of AUD and NZD, ahead of RBA and RBNZ meetings this week. Both extended their net AUD shorts. On NZD, funds sold the currency to take their position to broadly flat, while asset managers extended their net NZD shorts to the most since January 2017.”

“On EMFX, funds pared their net longs while asset managers bought EMFX with their longs in MXN and RUB now at extreme levels.”