Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

IMM CFTC: Speculators Begin 2012 With Record Short Euro Position

BySaxo Bank
AuthorSaxo Bank
Published 01/02/2012, 08:21 AM
Updated 03/19/2019, 04:00 AM
AWRE
-

As 2012 begins the nervousness about the fate of the Eurozone continues. The latest data from the CFTC which was collected last Tuesday showed that speculators in increased numbers continue to express their negative views on the Eurozone by shorting the Euro. The negative Euro sentiment has now easily surpassed levels that were seen when Greece faced possible default back in May 2010.

Although the overall direction of the Euro remains to the downside investors should, at least short term, be aware of the dangers of a potential bounce given the elevated short position that now exists.

The main beneficiary of this selling has been the dollar with most other currencies playing a secondary role. The net dollar long position is now back above 20 billion dollars and last week alone some 3 billion dollars were added.

Long positions in AUD rose by 30 percent as its AAA status continues to attract buyers looking for a safe haven. Given the currency’s strong relations to (slowing) Chinese economic activity this looks like a potential dangerous strategy and further upside seems limited. Other commodity currencies like the CAD saw its net short position being reduced somewhat while the JPY failed to attract new buyers with the net long position having been reduced for the last five weeks in a row.Chart - 1
Chart - 2
Chart - 3

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.