Leveraged funds’ / asset managers’ balance breakdown - Nomura

Analysts at Nomura noted that leveraged funds turned NZD short, while cutting EUR long.

Key Quotes:

"NZD: In the week ended 24 October, leveraged funds turned net short NZD (8%) for the first time since late May 2017. Maximum short positioning over the past year is 27%, recorded in early May. On the other hand, asset managers’ net short positioning in NZD decreased to 67% from 71% the last week. 

EUR: Leveraged funds cut their long EUR positions from 8% to 5% in the past week. The maximum net long positioning over the past year was 25% in late August. Asset managers’ net long EUR positioning continued to hold near 36%. 

JPY: Leveraged funds' net short positioning in JPY increased to 51% from 47% the previous week. A one-year high of 64% was recorded in late July. In contrast, asset managers’ net short JPY positioning decreased to 31% from 40%. 

USD: Our BIS volume-weighted proxy shows that leveraged funds’ net short USD positioning decreased to 1% from the previous week of 6%. On the contrary, our proxy shows asset managers’ net long USD positioning decreased slightly to 8% from 10%."