NY Open: Who let the bears out?
There's a storm blowing down Wall Street as yesterday's tech rout gathers pace and blasts leading indices lower still, while in FX, a resurgent greenback picks off the G10 majors.
Head of Commodity Strategy
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During the past three weeks speculators have halved their bearish dollar bets against nine IMM currency futures. Last week, the gross short was cut by one-quarter with all currency except the CAD being sold against the greenback.
Interestingly, the EUR net-long hardly moved and stayed at 80% of the record seen just a few weeks ago. This came as the drop in EURUSD to the lowest since December attracted both fresh long and short positions. The net-short in CHF reached a six-year high after EURCHF returned to 1.20 and thereby retraced all of the January 2015 collapse.
In fixed income, leveraged funds maintained an extended bearish bet across the US yield curve with the value of one basis point move staying close to $200 million.