12 February 2018 at 11:34 GMT
- Lack of position changes illustrated currencies' relative calm
- But stock/bond rout did help trigger mild short-covering of USD
- Net-long in S&P 500 reached a nine-year high
Non-commercial net-long in VIX futures reached a record. Pic: Shutterstock
By Ole Hansen
IMM Currencies: The position changes, or lack of them, describes very well the relative calm that was seen in currencies last week. The unfolding rout in stock and bond markets helped trigger mild short-covering of the dollar, especially against EUR and GBP while risk was added to JPY, CAD and MXN.
: In equities, leveraged funds took the net-long in S&P 500 to a nine-year high while also buying Nasdaq and selling the Dow.
The impact of the blow-up of inverse volatility ETNs was seen in VIX futures. The non-commercial net-long reached a record, following massive buying to the tune of 145,000 lots
– Edited by Clare MacCarthy
Ole Hansen is head of commodity strategy at Saxo Bank