COT: Broad dollar buying continued ahead of Turkish rout
Head of Commodity Strategy
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The speculative dollar long against nine IMM currency futures rose 9% to $22.5 billion, an 18-month high. Selling of euro, CHF, GBP, and AUD more than offset buying of JPY and CAD.
The two biggest contributions came from a reduction in the euro net-long which more than halved to a 15-month low, and sterling where the net-short jumped by a quarter.
Leveraged funds continued to increase short duration across the US yield curve. The DV01 rose by $2.5 million to $227 million with selling of fives (new record) and T-bonds more than offsetting a 10% reduction of what the previous week was a record short in 10-year notes.
Short selling of stock market volatility continued with the CBOE VIX Index net-short reaching 114,000 lots. This was the highest reading since last December before the blowup of short volatility ETNs back in early February helped trigger aggressive buying.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.