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Reduction in USD positioning driven by JPY - ANZ

FXStreet (Łódź) - ANZ Strategists, HuiYing Chan and Khoon Goh observe that for the second running week JPY has driven the reduction in USD positioning.

Key Quotes

"Leveraged funds increased their overall net long USD positioning by USD0.4bn to USD31.6bn in the week ending 28 October. There was a wide range of positioning changes in the individual currencies, reflecting position adjustments ahead of the 30 October FOMC decision. Since the cut-off date, net USD positioning likely increased further on the back of the FOMC’s more upbeat tone on labour markets and the surprise easing by the BOJ."

"The reduction in USD positioning was driven by the JPY for the second week. Net short positioning in JPY reduced by USD1.0bn to USD5.0bn."

"Since the cut-off date, USD/JPY has moved from 108.2 to 112.8 on the back of further quantitative easing by the BOJ. We expect net short JPY positions to be higher at the next CFTC report."

"Overall, EUR led the way in net selling, with net short positions increasing by USD0.7bn to USD20.1bn. Overall net short positions in EUR, while stretched, is still some way off its high of USD25bn recorded in June 2012, suggesting further room for increases in net short positioning."

"GBP continued to fall for the 4th consecutive week as the timing of BOE rate hikes gets pushed out. Net long positions in GBP declined by USD0.2bn to USD2.2bn. Notably, it is the only currency that is still registering a net long position."

"Commodity currencies saw net positioning unchanged after 7 consecutive weeks of selling. Net short positioning in commodity currencies stayed unchanged at USD4.2bn."

"In particular, we saw net buying in AUD of USD0.1bn. This was likely due to the recent Chinese data (Q3 GDP and flash PMI) coming in better than expected, helping to allay growth fears."

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