Leveraged funds turned GBP long and built up EUR long again - Nomura

In the week ended 26 September, leveraged funds turned net long in GBP positioning for the first time since early June 2016, notes the research team at Nomura.

Key Quotes

“The net long position is 11%, rising from 4% of net short positioning last week. In contrast, asset managers net short positioning in GBP declined slightly from 58% to 59%.”

“EUR: Leveraged funds built up EUR long position again, rising from 1% to 17% of total contracts. Maximum net long positioning over the past year is 25% in late August. On the other hand, asset managers net long EUR positioning continues to hold near 35%.”

“JPY: Leveraged funds' net short positioning in JPY rose to 41% from 29% last week. Maximum net short position over the past year is 64% in late July. However, asset managers net short JPY positioning declined from 37% to 35%.”

“USD: Our BIS volume weighted proxy shows that leveraged funds USD positioning rose to 9% from 3% last week, recording the largest short position over the past year. By contrast, asset managers USD positioning is slightly long (5%).”