FXstreet.com (Barcelona) - Market positioning in the week ending
August 7 suggests that speculators in the futures market generally
agree with our assessment that ECB President Draghi's recent
proposal was not a game changer, says March Chandler, Global Head
of Currency Strategy at BBH.
"The recent pattern continued, which essentially means buying the
Australian and Canadian dollars and Mexican peso and some light
position adjusting in the other currency futures" Marc said.
March argues, in contradiction to what some markets observers are
saying, that the Commitment of Traders report "does not show
speculative operators are selling the euro on the crosses, the
report does not bear this out" he noted.
Information provided by Brown Brothers Harriman:
Euro: Gross long euro futures positions rose for the third
consecutive week. The 5.4k increase brought the gross long position
to 46.7k. Gross short positions fell for the fourth consecutive
week. The a little less than 2k shorts were covered, still leaving
a large gross short position of 178.5k contracts. This combination
produced a modest decline in the net short position from 139k to
131.7k contracts, which is the smallest in almost three months.
Yen: The net long yen position was trimmed to 27.5k contracts from
32.3k. Yet this did not reflect decline in gross longs. They
actually edged higher by a little more than 500 contracts to 55.9k.
The decline in the net long position was a function of 5.2k new
shorts coming being established.
Sterling: At a net short 8.3k contracts, the speculative position,
though quite modest, is the largest in over a month. The gross
shorts rose by almost 1k contracts. It was the 5.5k decline in
gross longs that accounts for the bulk of the change in the net
Swiss franc: Like the other currency major currency futures, the
change in speculative positioning in the franc was quite modest.
The net short position fell by less than 1k contracts to 17.9k. The
gross long position rose by 1.4k contracts, while the gross short
position rose by a little less than 500 contracts.
Canadian dollar: The net long speculative position rose to 19.1k
from 12.4k contracts. It is the largest in two months. The bulls
continue to accumulate. They added 12.5k contracts to 43.2k. Some
speculators tried, unsuccessfully, to pick a top in the Canadian
dollar and added 5.9k shorts to 24.1k contracts.
Australian dollar: Speculators like the Canadian dollar, but they
like the Australian dollar even more. The net long position jumped
to 52.9k contracts in the week ending August 7 from 37.2k the
previous reporting period. It is the largest in three months. Longs
added 14.8k contracts to 94.6k. Some bears capitulated and covered
about 920 contracts, but still hold 41.7k contracts.