Hedge funds and other money managers cut their net dollar long exposure through IMM currency futures by 44 percent following the Greek election and ahead of the US Federal Open market Committee meeting. The latest data from the CFTC covering the week ending June 19 showed that all eight IMM currency apart from the CAD were bought. It also showed the first major reductions in EUR short positions in a while and the AUD also returned to favour amongst investors following its strong rally.
Highlights:
AUD net position returned to neutral following the net purchase of 42k contracts.
EUR net short reduced by 28 percent as the Eurozone currency continued to recover from the Maj sell-off. Lack of extra stimulus from the Federal Reserve has probably seen sellers return and this will be reflected in next week’s report.
CHF short position was trimmed by 80 percent with dollar weakness triggering some buying. Overall the net position remains in negative territory.
Most other currencies saw little or no change with CAD and JPY still being the only two currencies with net long positions held against the dollar.
Ole Hansen,
SAXO BANK