2 Jun 2014
May sees specs shift to shorts EUR, CHF - TDS
FXStreet (Bali) - Marc Chandler, Global Head of Currency Strategy at BBH, shares the latest highlights on the speculative positioning in the CME futures market.
Key Quotes
"With a couple week lag behind the euro, the net speculative position swung to the short side for the Swiss franc in the latest Commitment of Traders report that covers the week through May 27. It is the first net short franc position in three months."
"The net speculative position is short four of the seven currency futures we track here: euro, yen, Swiss franc and Canadian dollar."
"There were no major (10k contract shift of more) gross position adjustment over the past week. The largest position adjustment was the gross long peso positions, which grew 9.1k contracts to 101.8k. This is the largest gross long position since last June. The net position of 83.3k contracts is also the largest since last June."
"The general pattern in the latest reporting period was for the gross short currency futures positions to have increased. The only exception was for sterling. Gross shorts were pared by 3.8k contracts to 43.1. The gross long positions were cut for the euro (-4.3k contracts to 70.8k), the yen (-1.7k contracts to 17.0k), sterling (-1.6k contracts to 78.4k) and the Swiss franc (-5,8k contracts to 11.6k)."
"The other three currencies saw an increase in the gross long positions: Canadian dollar (+6.1k to 32.6k contracts), the Australian dollar (+1.9 to 52.k contracts), and the Mexican peso, that we already discussed as the largest gross position adjustment."
"The month of May saw the net speculative position for both the euro and franc shift to the short side. During the month, the net short yen and Canadian dollar positions were reduced, while the net long sterling position was also cut. The net position in the Australian dollar was little changed. The net long peso position grew."
"Given the focus on the US bond market rally, we looked at the Commitment of Traders for the 10-year Treasury note futures. There was a large adjustment to positions. Both long and shorts were cut. The latter more than the former and this led to sharp reduced in the net short position to 19.1k contracts from 97.9k. The gross short position was slashed by 131k contracts to 398.4k. This is the largest short covering since December 2012. The gross short position returned to late April levels. The gross long position was cut by 52.1k contracts to 379.3k. Up until now there was no evidence from the futures market that the bond rally was a product of short-covering. The reporting week ending May 20 saw the net short position rise to it highest level since before the financial crisis."
Key Quotes
"With a couple week lag behind the euro, the net speculative position swung to the short side for the Swiss franc in the latest Commitment of Traders report that covers the week through May 27. It is the first net short franc position in three months."
"The net speculative position is short four of the seven currency futures we track here: euro, yen, Swiss franc and Canadian dollar."
"There were no major (10k contract shift of more) gross position adjustment over the past week. The largest position adjustment was the gross long peso positions, which grew 9.1k contracts to 101.8k. This is the largest gross long position since last June. The net position of 83.3k contracts is also the largest since last June."
"The general pattern in the latest reporting period was for the gross short currency futures positions to have increased. The only exception was for sterling. Gross shorts were pared by 3.8k contracts to 43.1. The gross long positions were cut for the euro (-4.3k contracts to 70.8k), the yen (-1.7k contracts to 17.0k), sterling (-1.6k contracts to 78.4k) and the Swiss franc (-5,8k contracts to 11.6k)."
"The other three currencies saw an increase in the gross long positions: Canadian dollar (+6.1k to 32.6k contracts), the Australian dollar (+1.9 to 52.k contracts), and the Mexican peso, that we already discussed as the largest gross position adjustment."
"The month of May saw the net speculative position for both the euro and franc shift to the short side. During the month, the net short yen and Canadian dollar positions were reduced, while the net long sterling position was also cut. The net position in the Australian dollar was little changed. The net long peso position grew."
"Given the focus on the US bond market rally, we looked at the Commitment of Traders for the 10-year Treasury note futures. There was a large adjustment to positions. Both long and shorts were cut. The latter more than the former and this led to sharp reduced in the net short position to 19.1k contracts from 97.9k. The gross short position was slashed by 131k contracts to 398.4k. This is the largest short covering since December 2012. The gross short position returned to late April levels. The gross long position was cut by 52.1k contracts to 379.3k. Up until now there was no evidence from the futures market that the bond rally was a product of short-covering. The reporting week ending May 20 saw the net short position rise to it highest level since before the financial crisis."