Leveraged funds’ net long AUD, net short EUR continue to rise - Nomura

Based on the latest COT report, leveraged funds’ net long AUD, net short EUR positions continue to rise, notes the Global FX Strategy Team at Nomura.

Key Quotes

Leveraged funds’ / asset managers’ balance breakdown • AUD: According to IMM data for the week ended 26 July, leveraged funds’ net long positioning in AUD continued to grow for the fourth consecutive week (to 55% net long vs. 44% last week). Meanwhile, asset manager net long positioning declined to 29.8% from 36% the Tuesday prior.

EUR: Leveraged funds’ net short positioning in EUR rose for the fourth consecutive week (to 62% of total leveraged funds’ contracts vs. 58% last week). Asset manager’s net long positioning remained unchanged at 12% of contracts.

NZD: Net long positioning in leveraged funds increased from 71% of contracts to 73% last Tuesday. This is the ninth consecutive week of net long positions increasing. Asset managers remain net short (-82%).

MXN: Leveraged funds’ net short positioning for MXN increased to 34% from 27% last week. Leveraged funds’ positioning has been net short since early May 2016. Meanwhile, asset managers’ long positioning (66.7%) was unchanged