📝CTA Model Shows CHF Max Long For First Time In Two Months: UBS Strategy

In G10, CTA positioning signals are showing that CTAs continue to look to add to CHF longs, say Rebecca Cheong and Megan Gordon. CTA signals screen max long CHF vs USD, from net long 83% on Tuesday (last 100% long signal in CHF was two months ago). EUR signals showed Increased CTA interest as net long levels rose to long 83% from 75% on Tuesday. NZD and AUD interest increased slightly, now sitting at net long 8% and net short 25% respectively (from flat and -33%). JPY (34%) and GBP (75%) signals were unchanged from Tuesday.

In Asia, the desk flags that local model accounts reduced IDR longs last week, indicating that the CTA signal shift in IDR may not yet be fully positioned in the market (net 25% long last week on net long 67% this week).

In Latin America, the CTA signals continue to show Interest In BRL and MXN. BRL now screens net long 75% (from 67% Tuesday), while MXN positioning remains solid at net long 67%. The desk has seen model accounts selling USD to buy BRL and MXN this week in line with the triggers the team has seen.

- UBS Strategy