Markets Added To Net Long USD Ahead Of FOMC Minutes‏

Published 11/25/2013, 05:54 AM
Updated 05/14/2017, 06:45 AM

The latest IMM data covers the week from 12 to 19 November.

Net long dollar positions added in the week ending 19 November. Investors added aggregate dollar longs from $13.4 billion to $15.7 billion in the week leading up to the FOMC minutes released 20 November. Net long USD positions are stretched from a historical perspective but compared to the level reached in June this year of close to $40 billion there is still room to add USD longs. Especially against EUR where positioning is close to neutral both on an absolute level and in a historical context. See the graph to the right that gives an overview of positioning in different currencies.

Investors added further to JPY net shorts and positioning in the USD/JPY is now stretched both in historical and absolute terms. However, note that taking a 'contrarian' view on JPY positioning has not been a profitable strategy. See in that respect the graphs on page 9 that depict return on trend following strategies and contrarian strategies, respectively.

Finally, note that the AUD/NZD cross remains stretched. The market has added further to net short AUD positions and net long NZD positions.

To Read the Entire Report Please Click on the pdf File Below.

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