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Flash: The US Dollar Buying Theme Continues - Nomura

FXstreet.com (Barcelona) - Nomura strategists note that the USD buying spree by non-commercial investors continued in the past week, with $3.9bn longs added, vs. almost all other currencies.

They see that net long positions are now at $41.7bn, which are very close to the mid-2012 and all-time high levels, though the shorts are more balanced than in that period where it was mostly vs. the EUR. Further, they see that only currencies where there was some buying were CAD and GBP, and both saw only small buying, and net positions remained negative (-$3.2bn and -$7.0bn respectively).

They note that EUR positioning remains net short (-$13.6bn) and there was small addition to these shorts. However, their real time indicator shows that most of that selling was reversed in the days after Tuesday. Further, JPY positioning is also net short, and their real time indicator shows addition to shorts by non-commercials from the -$12.2bn level as of Tuesday. Finally it is notable that the option skew is indicating extreme bearishness for CHF, while the futures positioning is less extreme (-$3.7bn).

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