Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Positioning Does Not Pose A Barrier For EUR/USD Upside‏

Published 03/10/2014, 07:38 AM
Updated 05/14/2017, 06:45 AM

The latest IMM data covers the week from 25 February to 4 March.

According to the latest IMM data, the biggest change in G10 positioning in the week ending 4 March was seen in the EUR where investors nearly doubled their speculative long EUR positions ahead of the ECB meeting (see page 2 for details). Data showed that speculators also unwound USD longs for the fourth consecutive week and overall USD positioning has in the four weeks moved from the 97th to the 87th percentile (still stretched long). Although an additional number of short EUR/USD positions have probably been flushed out following the ECB meeting on Thursday, EUR positioning remains in neutral territory and thus, from a positioning point of view, there should be no immediate barrier for further near-term EUR/USD upside.

Investors also added net longs in the safe haven currencies CHF and JPY – probably as a consequence of the intensification in the Ukraine crisis in the same week (Russian soldiers invading Crimea). While CHF positioning remains broadly square, speculators continue to be very short the Japanese currency.

Non-commercial positioning remains very stretched short CAD and AUD with little change in positioning in the week to 4 March. On the other hand, speculators continue to add NZD net longs, sending total NZD positioning to the 74th percentile. Measured in percentage of open interest, speculators have not been this long NZD since May 2013. Consequently, positioning begins to pose a barrier for further moves lower in the AUD/NZD and CAD/NZD.

In commodities, net longs were added in wheat, corn, gold and soybeans. In a historical perspective, however, positioning is only stretched in the latter. Net shorts were added in oil and copper.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.