According to the CFTC’s positioning data for the week ending 25 June 2019, both leveraged funds and asset managers were net USD sellers, amid a softening greenback, notes the analysis team at ANZ.
Key Quotes
“With a trade truce reached between the US and China at the G20 summit, USD weakness will likely extend on improving sentiment, while the US Federal Reserve is still expected to deliver rate cuts as they have signalled.”
“Funds and money managers remained net JPY buyers during the week as risk aversion continued. However, with the trade truce, demand for JPY as a safe haven currency will likely recede.”
“For EUR, funds and asset managers acted in opposite directions, with the former reverting to net selling and the latter turning into a net buyer. Their positioning in GBP hardly changed.”
“Funds remained net short in all three commodity currencies, but they trimmed their CAD shorts while raising their shorts in AUD and NZD.”
“Meanwhile, asset managers cut their CAD and AUD shorts, while extending their net short position in NZD. On EM FX, funds continued to be net EMFX sellers while asset managers were broad based buyers.”
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