Collapse of dollar longs - SocGen

FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, notes that if we add up the positions in all the currencies of the latest CFTC data that speculative traders are long of against the dollar which shows dollar longs being exited.

Key Quotes

“Net long USD position fell to its lowest level in over a year last week.”

“The sharpest cuts in are in longs of the higher-beta currencies, led by the Mexican peso, which is a proxy for EMFX in the futures market, as well as Canadian, Australian and New Zealand dollars. In line with the market trends of late, sterling, yen and Euro positions aren't moving much.”

“The data leave an impression of a market which is taking off shorts in high-beta currencies, but is not, yet, long of them. That is a warning to anyone looking to re-enter dollar longs prematurel.”