Money managers and other speculative traders continued to reduce their long dollar positions during the week ending August 14. The aggregate dollar position versus the eight IMM currency futures which we track in this report dropped to USD 4.6 billion, which is the lowest level in 11 months. The dollar selling was against most currencies apart from the CHF and interestingly the EUR.
The main beneficiaries of the selling however were the two commodity currencies; AUD and CAD. The gross long AUD position should now raise a few eyebrows as it reached a new record last week at 110k contracts. The net long position climbed by 13.8k contracts or USD 1.4 billion equivalent.
The short EUR position remains elevated despite all the recent talk about new initiatives with any wholesale reduction looking unlikely unless we move closer towards EUR 1.3000.
Ole Hansen,
SAXO BANK