Leveraged funds built up CAD long and reduced JPY short positions – Nomura

According to IMM data for the week ended 1 August, leveraged funds extended CAD net-long positions to 33%, approaching the one-year high of 38% after nine consecutive weeks of positioning increases, notes the analysis team at Nomura.

Key Quotes

“In early June, leveraged funds were net short CAD at 69% of outstanding contracts. Asset managers also increased long positioning to 74% of outstanding contracts. This is also the ninth consecutive week of CAD positioning turning more positive.”

“CHF: Leveraged funds’ net-long positioning in CHF rose to 35% from 16% last week. Leveraged funds have maintained long positions for seven weeks. Asset managers’ net-long positioning declined to 9% from 25% last week. Asset managers have been long CHF for three weeks; net shorts peaked in December 2016.”

“JPY: Leveraged funds’ net-short positioning in JPY decreased to 54% from 64% last week. Leveraged funds have been short JPY since 9 May. Asset managers’ net-short positioning declined to 40% from 46% last week.”

“EUR&GBP: Leveraged funds’ net-long positioning in EUR rose to 7% from 5% last week, while asset managers’ net-long positioning declined to 37% from 38% last week. In GBP, leveraged funds’ net-short positioning was maintained at 13%, and asset managers’ net-short positioning edged up to 57% from 56% last week.”