Forex futures market speculative positioning data from the CFTC Commitments of Traders report as of the close on Tuesday, May 13 2014:
- EUR net short 2K vs long 32.5K prior
- JPY net short 65K vs short 61K prior
- GBP net long 32K vs long 41K prior
- AUD net long 17K vs long 8K prior
- CAD net short 26K vs short 32K prior
- CHF net long 7K vs long 13K prior
- NZD net long 19K vs long 21K prior
What makes me happiest about this report is that there were significant shifts in almost every currency. New positions means the animal spirits are coming out and volatility is coming.
The headline grabber is obviously the rush to the exits from euro longs after Draghi. Seeing the size of that swing, I’m disappointed that the euro hasn’t fallen further and I take it as a sign that the euro drop might not have so much left in the tank.
The second surprise is traders adding to yen shorts even with the yen in the midst of a two-week rally. Something doesn’t add up there.
Cable longs cleared out after the test of 1.70 as well but they might get back in if this rebound continues.
