Futures market speculative positioning data from the CFTC as of the close on Tuesday:
- EUR net short 44K vs short 25K prior
- JPY net short 80K vs short 94K prior
- GBP net short 61K vs short 50K prior
- AUD net long 54K vs long 7K prior
- CAD net short 65K vs short 53K prior
- NZD net long 12K vs long 19K prior
- CHF net short 10K vs short 13K prior
- US Dollar Index longs at 54K vs 32K prior
It doesn’t take much to inspire the market to pile into Australian dollar longs. We saw yen shorts trimmed back this week, which is a good sign if you’re thinking of buying USD/JPY at these levels.
The market got excited about the drama in Cyprus but anyone holding a euro short since Tuesday is starting to feel a bit of a squeeze.