Leveraged funds added further to long GBP positions – Nomura

In the week ended 6 February, leveraged funds increased their long GBP positioning to 59% of outstanding contracts, a post-Brexit vote high, notes the research team at Nomura.

Key Quotes

“This was the fifth week net long positioning increased. Asset managers maintained positions at 35% net short, still near post-Brexit positioning highs.”

“CAD: Leveraged funds increased CAD net long positioning for a fifth week, to 61% of outstanding contracts. This is close to the levels of net long positioning reached in October 2017. Asset managers remained net long at 64% of outstanding contracts.”

“JPY & CHF: Asset managers added longs/reduced shorts to both JPY and CHF positions in the week ended 6 February. JPY net long positioning was extended to 52% from 39% and CHF net shorts were just 14% of outstanding contracts. Leveraged-fund positioning in both currencies was largely unchanged.”

“AUD: Both leveraged funds and asset managers increased long AUD positioning over the last week. Asset-manager positioning in AUD is now close to neutral, from being 75% net-short at end-December 2017. Leveraged-fund positioning remains net long, at 32% from 27%.”