Video

John J Hardy
Saxo Bank’s head of FX strategy John Hardy takes a closer look at trends and moves in today’s forex charts, including EURUSD, USDJPY, AUDUSD, and EURSEK.
Article / 05 March 2018 at 8:35 GMT

COT: Dollars and bonds sold after hawkish Powell testimony

Head of Commodity Strategy / Saxo Bank
Denmark
  • EUR, GBP and JPY all bought, other six IMM currency futures sold
  • Gross dollar short rose by 27% to 14.5 billion in the week to Feb 27
  •  EUR net-long rose for the first time in four weeks 

By Ole Hansen

In the week to February 27 speculators bought EUR, GBP and JPY while being modest sellers of the other six IMM currency futures. These developments led to an overall rise of the gross dollar short by 27% to 14.5 billion and it once again the most shorted currency ahead of the JPY. 
 
Speculative IMM currency positioning


The EUR net-long rose for the first time in four weeks and stood at 93% of the previous record set on January 30 .

Speculative IMM currency positioning











Financials:
 
Leveraged funds extended their short duration across the US yield curve following the Powell-driven selloff on Tuesday February 27. The DV01 which measures the dollar value of a one basis point change in yield jumped to 163 million dollars, the highest in more than one year.

In equities the flows were muted with selling of S&P500 being offset by buying of Nasdaq. The C’Boe VIX net-long was trimmed by 42% as short-sellers emerged for the first time in five weeks.

Speculative positioning in Financials
 

– Edited by Clare MacCarthy

 

Ole Hansen is head of commodity strategy at Saxo Bank

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Commitments of Traders: IMM currency futures

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Commitments of Traders: Bonds and stock index futures

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