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Long USD Bets Still In Stretched Territory

Published 05/18/2015, 06:45 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
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The latest IMM data covers the week from 5 May to 12 May 2015.

The USD index fell for the fifth consecutive week after Wednesday's disappointing retail sales and Friday's very weak University of Michigan consumer sentiment. The significant build in bullish dollar positions raises the vulnerability and sensitivity of the 'greenback' and the disappointing US data mean many of these positions have been unwound.

Indeed, the latest Commodity Futures Trading Commission IMM positioning data show in the week to 12 May speculators cut their USD exposure for the seventh consecutive week , equalling the length of the long position reductions seen at end-Q1 14 (page 2). However, non-commercial USD positioning probably remains stretched even after the recent sell-off (at Tuesday's close, positioning was very elevated at the 95th percentile). This highlights the more persistent EUR/USD sensitivity to the upside when US data disappoints, as there is still potential for more unwinding of long USD positions.

To Read the Entire Report Please Click on the pdf File Below

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