Leveraged funds bought USD for the third straight week – ANZ

Based on the positioning data for the week ending October 8, 2019, the Australia and New Zealand Bank (ANZ) conveyed that the leveraged funds and asset managers took opposite positions on various currencies.

Key quotes

“While the former (leveraged funds) bought for the third straight week, the latter (asset managers) turned sellers. Apart from some weakness in US data which has dampened USD, of more importance is the conclusion of a partial US-China trade deal which will likely boost risk sentiment and keep the USD weak in the near term.”

“Funds sold EUR, while asset managers bought. Both, however, were net GBP buyers. Renewed hopes of the UK securing a Brexit deal in time could provide further support to GBP. On JPY and CHF, while funds pared their exposure, money managers ramped it up.”

“On commodity currencies, funds bought CAD while asset managers sold. They also acted in opposition directions in AUD and NZD. Funds were net sellers in both while money managers were net buyers. In EMFX, funds were combined net buyers, while the asset managers were sellers due to positioning changes in RUB alone.”