FXStreet (Guatemala) – Analysts at TD Securities offered findings for the CFTC Commitments of Traders Report – Week Ending Tuesday, June 2nd.
Key Quotes:
“IMM data continue to show an increase in USD positions with aggregate exposure totalling an estimated USD36.4bn—a rise of USD5bn from last week. The increase came mostly at the expense of the JPY and AUD. Net JPY shorts grew for a second consecutive week by 23.5k contracts to –85.7k with another significant shift by leveraged accounts. Net JPY shorts are now at its lowest level since the start of the year and it raises the risk that we could see a material break higher in USD/JPY towards 127 and possibly even 135.”
“There was a significant shift in positioning in the AUD where there was a near 20k contract swing from net longs last week to net AUD short of –13.3k contracts. The shift can probably be tied to positioning ahead of the June 2nd RBA meeting where investors looking for an easing bias were on the wrong end of this trade. Instead, AUD/NZD longs look appealing ahead of next week’s RBNZ meeting where we expect a dovish tone to emerge. Indeed, net NZD shorts grew to –10.5k contracts from –5.1k, which is the largest on record.”
“Elsewhere, investors returned to a net CAD short position after a two week hiatus with a swing of 8.4k contracts to –1.0k. Thematically, we continue to like short CAD positions. In MXN, net shorts grew to –45k (from –32.5k).”
“Positioning in GBP and CHF remained unchanged at –25.7k and +8.4k respectively.”
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