USD positioning mixed, GBP shorts added - ANZ

According to the CFTC’s positioning data for the week ending 21 May 2019, leveraged funds and asset managers acted in opposite directions in their USD positioning, notes the research team at ANZ.

Key Quotes

“Funds pared their net USD longs while asset managers reduced their net USD shorts. Looking ahead, US-China trade developments, Fedspeak, US stock and Treasury yield movements will be key drivers of USD positioning.”

“Given intensifying trade tensions, it is not surprising that both funds and asset managers remained net buyers of safe-haven currencies (JPY and CHF). Funds were also buyers of EUR but asset managers were sellers.”

“On GBP, both were net sellers. GBP could have been sold further amid heightened Brexit uncertainty following the resignation of Theresa May.”

“Funds and money managers also acted differently in commodity currencies. Funds were modest buyers, paring their net shorts in CAD and AUD while adding to their net NZD longs. However, asset managers were broad-based sellers, increasing their net shorts in CAD, AUD and NZD.”

“On EMFX, funds saw small net buying while asset managers sold RUB.”