Leveraged funds scaled back JPY longs and turned neutral on AUD - Nomura

In the week ending Tuesday, 17 April, leveraged funds cut long JPY positioning to 19% from 26% the previous week, notes the research team at Nomura.

Key Quotes

“The 1y-high JPY net-long position is 36%, recorded in April. In contrast, asset managers increased long JPY positioning from 21% to 24%.”

“GBP&EUR: Sterling net long positioning fell from 55% to 50%, maintaining a level somewhat close to the 1y high of 59% recorded in February. However, leveraged funds added longs to EUR positions, increasing to 18% from 16% the previous week. Leveraged funds had reached 41% net-long EUR in January.”

“CAD&AUD: Leveraged funds scaled back short CAD position from 56% to 47%. The 1y high in CAD net-short positioning is 69%, recorded in May. On the other hand, leveraged funds are now almost naturally neutrally positioned on AUD, reducing netlongs from 19% to 4%.”

“USD: Our BIS volume-weighted proxy shows that leveraged funds slightly decreased net short USD positioning from 19% to 17%. Net short positioning has been maintained since January 2018.”