Leveraged funds’ / asset managers’ balance breakdown - Nomura

Analysts at Nomura offered a breakdown of the markt's positioning.

Key Quotes:

"JPY: According to IMM data for the week ending 20 December, leveraged funds’ net short JPY positions were reduced slightly (23% of outstanding contracts vs 40% last week), after three consecutive weeks of extending net-short positions. Asset managers’ net short positioning in JPY was roughly unchanged on the week.

CHF: Leveraged funds’ positioning in CHF turned net long last week, a jump from netshorts at 65% to net-long positions at 16% of outstanding contracts.

The last time CHF net long positioning was at this level was in April 2016. Asset managers’ net short positioning in CHF was roughly unchanged on the week. •

AUD/NZD: Leveraged funds’ net long positioning in AUD was reduced to flat, from net longs of 24% in the prior week, and a local peak of 56% in mid-November. Meanwhile, asset managers’ net positioning in AUD remained net short (18%), having flipped from almost 10 months of net long positions in the week ending 22 November. Leveraged fund positioning in NZD extended net long positions to 62% from 52% previously."