The latest Commitment of Traders (COT) report from the US CFTC shows that leveraged players* reduced net USD longs across the board in most actively traded currency pairs on the IMM (CME) in the week to Tuesday April 21. The notable exception was in USDMXN, where buying returned after last week’s heavy selling.
· In EURUSD, longs were increased and shorts decreased, resulting in net demand of EUR1.2bn.
· In AUDUSD, the over-crowded short trade was reduced by close to AUD500bn.
· Cable shorts were reduced by GBP433mn.
· USDCAD saw an increase in shorts and reduction of longs as the market broke below significant technical levels on April 15.
· USDCHF remained the place punters feared to tread, and little went through: It was always thus.