10 Jun 2013
Flash: Speculative Positions Get Unwound - Nomura
FXstreet.com (Barcelona) - Nomura strategists have taken a look at last weeks COT positions and note that speculative positions are in the process of getting unwound.
They begin by highlighting that the key theme this week was positions getting unwound, with the most notable shifts coming in EUR (short covering of $5.2bn), MXN (reducing longs by $1.6bn) and JPY (short covering of $1.9bn). They feel that this is in line with the large selloff in the EM complex in the past few days, which saw USDMXN get as high as 12.95. They also saw general EUR and JPY strength in that period, which is in line with positioning changes. They write, “With the positioning washout on Thursday, these numbers may have moved, but our real time indicator shows sizeable addition to JPY shorts, which is very surprising given that we broke through several key levels.” They also note that the utlier to the position clearing theme was AUD where they saw an addition of shorts by spec accounts of -$1.6bn in the week.
They begin by highlighting that the key theme this week was positions getting unwound, with the most notable shifts coming in EUR (short covering of $5.2bn), MXN (reducing longs by $1.6bn) and JPY (short covering of $1.9bn). They feel that this is in line with the large selloff in the EM complex in the past few days, which saw USDMXN get as high as 12.95. They also saw general EUR and JPY strength in that period, which is in line with positioning changes. They write, “With the positioning washout on Thursday, these numbers may have moved, but our real time indicator shows sizeable addition to JPY shorts, which is very surprising given that we broke through several key levels.” They also note that the utlier to the position clearing theme was AUD where they saw an addition of shorts by spec accounts of -$1.6bn in the week.