CAD, AUD, NZD are the only currencies held Net Long VS USD
Data in this report cover up to Tuesday Feb 14 & were released Friday Feb 17.
This week’s swings in sentiment were limited to positive adjustments for CAD, AUD, JPY and CHF with a build in bullish positioning for the two growth sensitive risk currencies and narrowing in bearish positions for the two safe havens. G4 currencies continue to dominate those held net short vs. the USD while AUD, CAD and NZD are the only currencies held net long vs. the USD. The aggregate USD long position fell for a sixth consecutive week with a $2.1bn decline to $16.3bn—its lowest level since early October.
CAD, AUD, and NZD are the only currencies held net long vs. the USD. All three have seen a five week run of improving sentiment. The $1.9bn net long position in AUD is the largest among the three, followed closely by CAD at $1.5bn. Underlying details are somewhat divergent however, with a broad two-month turn in CAD sentiment driven by a combination of short covering and increasing confidence among CAD bulls. For AUD, we note the sizeable build in positions to both sides, leaving those newly established vulnerable to a turn in spot with AUD hovering around fresh multi-month highs.
Positions in EUR and GBP were little changed w/w. Bearish GBP sentiment has been broadly stable around $5bn for much of 2017. The EUR short has narrowed modestly however it remains the largest at $6.2bn.
JPY sentiment has now improved for 7 consecutive weeks with an impressive turn from December, delivering a cumulative $3.7bn narrowing in the net short to $5.6bn. Gross shorts have nearly halved