📝CTA Models Turned Further Bearish On NZD: UBS Strategy

CHF and EUR positioning signals remain max long against the dollar. CTA positioning signals turned net long AUD for the first time In two months, now signaling net long 17% vs USD from net short 8% on Tuesday. NZD signals turned further bearish with more strategies signaling short than seen earlier in the week (-42% vs -33%). Positioning signals now sit net short JPY vs USD, with strategies net short 8% from net long 8% Tuesday.

CTA positioning signals are broadly selling Asia EMFX against the dollar. IDR remains the favored long In the region, with positioning net long 75%, down from net long 84%. INR was the sole currency in the region that had CTAs tum less bearish, with signals net short 17% vs net short 25% Tuesday.

Positioning signals are little changed from Tuesday in the complex. ZAR -67%, PLN 1-92%, HUF +92%, CZK 1-100%. Signals retreated from net long 100% in HUE after Wednesday's sharp selloff in HUE. The desk continues to see selloff risks in HUF as positioning remains crowded.

BRL positioning signals from CTAs came In less bullish with CTAs targeting net long 75% from long 84% on Tuesday after the price action on Wednesday. Positioning and client Interest In USDBRL remains high. MXN signals remain net long 83% vs USD.

- UBS Strategy