During the shortened trading week ending January 1 speculative investors became net-long of EUR for the first time since August 23 2011. As a result of this EUR buying and some continued reduction of sold JPY positions the aggregate Dollar short position against the eight IMM currency futures rose by 18 percent to US 16.4 billion. Elsewhere, activity was light with the commodity currencies seeing some small buying while some light selling in MXN after the net-long rose to a record the previous week.
Needless to say that some heightened volatility during the first week of January will have shuffled the deck quite a bit with EUR traders especially feeling the brunt of last week’s Euro weakness after the gross-long in EUR more than doubled during December to reach the equivalent of USD 10.2 billion (81.9k contracts), the highest since June 2012.
Click here to read the full report: FX CFTC_010713
SAXO BANK