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USD longs cut aggressively - Nomura

FXStreet (Bali) - As Nomura notes, according to the IMM data for the week ended August 25, non-commercial longs cut USD longs by $9.2bn, bringing net longs to $31.7bn.

Key Quotes

"According to the IMM data for the week ended August 25, non-commercial longs cut USD longs by $9.2bn, bringing net longs to $31.7bn. By Friday’s close, longs had fallen further to $29.9bn."

"This week included the shift in Fed hiking expectations after the minutes last week and the risk-off sentiment at the beginning of this week."

"EUR and JPY shorts were cut by $3.4bn and $5.0bn on the week ended Tuesday. By Friday’s close, there were a further $0.7bn and $2.0bn of cuts, respectively, bringing estimated positioning for EUR to -$9.4bn and for JPY to -$4.1bn. This is the least net short EUR has been since June 2014."

"GBP positioning flipped to net long after $0.7bn of buying through Tuesday. This is the first time GBP has been net long since September 2014. AUD and MXN shorts were added to, bringing positioning to -$4.6bn and -$2.4bn, respectively."

"For AUD it is near the most net short it has been all year, and for MXN it is nearing again its all-time most net short levels (-$2.7bn) set last month."

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