Leveraged funds scale back EUR longs – Nomura

In the week ending Tuesday 20 March, leveraged funds scaled back EUR net long positioning to 14.9% of outstanding contracts from 25.5% the previous week, notes the research team at Nomura.

Key Quotes

“The 1y high for net-longs is 41%, which was reached in end-January 2017. Asset managers modestly added to EUR net-longs, currently at 46%.”

“NZD: According to IMM data, leveraged fund positioning in NZD turned substantially positive, rising from 2% net-short to 48% net-long. The size of the rise is historically large, and should be taken with some caution. Meanwhile, asset managers scaled back NZD longs from 35% to 18%.”

“JPY: Leveraged funds added to long JPY positioning, which now stands at 10% of netlongs. Asset managers also turned more positive on the yen, increasing net-long positioning to 28%.”

“GBP: Sterling net-long positioning recovered in the last week, with leveraged funds extending net longs to 48% (39% previously). The 1y high in GBP net-long positioning is 59%. Asset managers kept net-short positioning unchanged at 38%.”