FX positioning: More position squaring – Nomura

FXStreet (Barcelona) - Research analysts at Nomura share the FX positioning data for currencies for the week ending December 16, noting that the general theme was position squaring, with specs selling $7.6bn of USD.

Key Quotes

“For the week ended December 16, non-commercial accounts sold $7.6bn of USD. This brought USD positioning further off of its highs from three weeks ago. The general theme was position squaring as specs generally bought currencies they were short and sold currencies they were long.”

“Specs sold $7.6bn of USD on the week ended Tuesday, bringing USD net longs to $39.8bn (the first time it has been under $40bn since September).”

“EUR was bought to the tune of $1.4bn on the week. This brought EUR positioning to -$19.8bn, which is the least net short EUR has been since July.”

“CHF shorts were cut significantly, to -$0.5bn from -$2.9bn after $2.4bn of buying on the week. This occurred just days before the SNB announced negative interest rates (see SNB introduces negative interest rates, 18 December 2014).”

“GBP and AUD shorts were also cut on the week, both by $0.9bn to -$1.4bn and -$2.8bn, respectively. Similarly, JPY shorts were reduced by $1.6bn to -$9.3bn.“

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