Hedge funds and other money managers made relatively small adjustment to their IMM currency positions during the week ending February 5 according to the latest “Commitment of Traders” report from the Commodity Futures Trading Commission (CFTC). The gross dollar short position derived from the eight IMM currency futures tracked in this report was almost unchanged after continued EUR buying was offset by selling elsewhere, especially against the GBP and CAD. The speculation about a near-term correction in the JPY continues to build.
– EUR net long position rose for a fourth week to the highest since July 2011
– JPY net-short was scaled back primarily due to a sixth consecutive weekly rise of those holding gross long positions (see chart below). Despite the continued rise from 84.5 during this time buyers of JPY have continued to emerge looking for a potential correction following the dramatic slide in the JPY since October last year.
– CAD net-long has now seen a 75 percent reduction from its September peak as negative housing data and a dovish Bank of Canada have removed some of its support.
– AUD still the most favoured currency although the EUR has been catching up.
Click here to read the full report: FX CFTC_021113
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