Hedge funds cut their long dollar exposure through IMM currency futures by almost one-third during the week ending June 11. The weekly data from the US Commodity Futures Exchange Commission showed how the resurgent EUR triggered a sharp reduction in the net-short position while the selling of AUD continued for an eleventh week resulting in the net-short reaching a new record thereby exceeding the previous most sold level from June 2012.
With traders beginning to scale back positions ahead of their annual summer break the gross-long dollar position at 25.3 billion remains elevated leaving it exposed to further reduction, most noticeably against the JPY if the correction seen over the past couple of weeks has further room to go.
Read the full report: FX CFTC_061713
SAXO BANK