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Reports from the Australia and New Zealand Bank (ANZ), based on positioning data is for the week ending 15 October 2019, show that the leveraged funds and asset managers keep taking contrasting positions as far as the US Dollar (USD) is concerned. The research also mentions support for the Euro (EUR) while the British Pound (GBP) witnessed positions’ offset.

Key quotes

“Leveraged funds and asset managers continue to take opposite positions on the USD. The former bought while the latter sold. USD positioning is expected to remain volatile ahead of the October Fed meeting, as markets weigh the impact of the recently announced Phase One trade deal between US and China, against the weak run of US data.”

“While EUR saw broad-based buying, funds and asset managers took offsetting positions on GBP. With the UK and EU securing a Brexit deal, market sentiment towards GBP has improved. A broader lift in risk sentiment also saw JPY and CHF sold across the board.”

“Among commodity currencies, funds were buyers of AUD. Asset managers’ buying of CAD offset their selling of AUD and NZD. In EMFX, funds overall net long positioning stood higher, while it fell marginally for asset managers.”