Funds reduced net dollar-long positions again - FXStreet

Analysts at ANZ noted that leveraged funds reduced their net long USD positions for the second consecutive week, albeit marginally. 

Key Quotes:

"This coincided with weak retail sales and CPI data during the week which led to increased uncertainty over the timing of the next Fed rate hike. Net dollar selling totalled USD0.2bn to take overall net long USD positions to USD14.5bn. However, Fed speak post the cut-off date pointed to a possible hike this year."

"Leveraged funds remained bullish on the yen, increasing their net long JPY positions by USD0.7bn to USD5.3bn. EUR saw net buying for the second consecutive week, reducing leveraged funds’ overall net short EUR positions by USD0.5bn to USD15.6bn.

Meanwhile, GBP selling continued into its seventh consecutive week. Net short GBP positions rose by USD0.4bn to USD5.8bn, the highest in five months. News reports about Brexit becoming a reality by April 2017 could see cable losing further ground.

Commodity currencies remained a mixed bag. CAD saw net selling worth USD0.6bn, with leveraged funds remaining net short CAD for the second consecutive week.

However, funds continued to favour the AUD and NZD. Net long AUD and NZD positions rose by USD0.3bn and USD0.2bn respectively. NZD gained ground after the RBNZ’s rate cut on 11 August.

Funds turned slightly bullish on EM currencies after three straight weeks of selling, buying a net USD0.25bn of US dollars against the MXN and RUB. Net long BRL positions remained little changed from last week.

Funds continued to increase their net short Eurodollar contracts, while trimming their net long 10 year USTs."