USD longs trimmed - ANZ

According to the CFTC’s positioning data for the week ending 4 June 2019, both leveraged funds and asset managers were net USD sellers, with the former continuing to trim their USD longs and the latter raising their USD shorts, notes the research team at ANZ.

Key Quotes

“Post the CFTC cut-off date, the USD has lost further ground on growing expectation of Fed rate cuts. We expect Fed policy and developments on the trade front ahead of G-20 summit in late June to drive the near-term positioning in USD.”

“Funds bought JPY and EUR against the USD, but were net sellers of GBP and CHF.  Money managers also bought JPY but CHF as well, while selling EUR and GBP.”

“On commodity FX, funds were net sellers while asset managers were net buyers. Funds raised their net shorts in CAD and cut their net NZD longs to a small short position, but they pared their net AUD shorts. Meanwhile, money managers pared their net CAD and AUD shorts but raised their net NZD shorts. Both funds and asset managers were net EMFX sellers.”