Leveraged funds’ short position in JPY almost hits one-year high - Nomura

In the week ended 14 November, leveraged funds' net short positioning in JPY increased to 63%, from 59% the previous week, notes the research team at Nomura.

Key Quotes

“A one-year high of 64% was recorded in late July. In contrast, asset managers’ net short JPY positioning fell to 27%, from 34%.”

“NZD: Leveraged funds increased net short NZD positions to 36%, from 32% the previous week, marking the highest short positioning over the past year. Asset managers’ net short positioning in NZD decreased to 14%, from 56% the previous week.”

“EUR&GBP: Leveraged funds decreased net short EUR positions slightly from 5% to 4%, positioning net short for a third week. The highest level of net short positioning over the past year was 69% in November 2016. Asset managers’ net long EUR positioning continued to hold near 40%. On the other hand, leveraged funds increased net long GBP to 22% from 14% the previous week. A one-year high of 29% was recorded in early October. Asset managers’ net short GBP positioning increased to 65% from 63%.”

“USD: Our BIS volume-weighted proxy shows that leveraged funds’ net long USD positioning was unchanged at 9%, maintaining a net long position for a third week.”