🧮 Leveraged Funds Trim NZD Net Long, Remains Stretched: Cable FX Macro

**As seen in IMM Positioning Report 03/17/23, subscribe at cablefxm.co.uk/reports

• Leveraged funds built net short bets on JPY, CAD turned net long, AUD net long was built, NZD net long was trimmed, the cumulative dollar position turned short

• The COT data saw future contracts held by leveraged funds reduced as % of open interest fell to 17% from a prior 21%. The net long in kiwi remains above its 1-standard deviation band, looking back at past 5-years of data. The average % of OI in NZD contracts held by leveraged funds stands at -3.9%

• It is interesting to see price action detached from speculators positioning, yen net shorts have been increased for 6 out of the 10 reporting weeks so far this year. Leveraged money % of OI in JPY contracts fell to -21% from a prior -19%, the net short position has now risen to the highest since June. However, we have seen an outperformance in JPY recently, not only vs the dollar but the G10. As of the last COT report, % of open interest in yen futures stands 4pp above its lower standard deviation band

• We remind you that the CFTC is keeping us about a week behind in positioning reporting after a cyberattack on ION Trading U.K., the latest read shows data up to March 7th