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COT Report: Post Brexit saw leveraged funds reduce USD net longs - ANZ Ivan Delgado

Khoon Goh, Head of Asia Research at ANZ, summarizes the futures positioning data for the week ending 28 June 2016, noting that post Brexit adjustments saw leveraged funds reduce their net long USD position.Key QuotesPost Brexit adjustments saw leveraged funds reduce their net long USD positions for the week ending 28 June. Leveraged funds’ overall net long position in the greenback was reduced by USD4.5bn to USD3.2bn. This was despite the DXY rallying following the Brexit result. The USD selling was broad based against all the major currencies. Surprisingly, net short GBP positions were reduced despite the sharp slump in sterling, by USD0.2bn to USD1.1bn). EUR saw the largest net buying during the week at USD2.4bn, which is at odds with the price action (see Figure 5). This is the first time in six weeks that EUR has seen net buying. The JPY continues to benefit from its safe haven status. Funds added USD0.9bn to take their net long JPY positions to USD5.8bn, the highest since December 2011Commodity currencies saw net buying of USD0.3bn. There was marginal change in NZD positioning, with CAD seeing net buying of USD0.2bn. Leveraged funds remain net long in NZD overall at USD1.7bn (see Figure 11), while overall net short positions in CAD and AUD stand at USD0.4bnOn EM currencies, leveraged funds stayed net short in MXN for the eighth consecutive week, but reduced their overall position by USD0.1bn. However, they continued to be net long in BRL and RUB with little change in positioningBrexit volatility saw funds turning to safe haven assets like gold. Net long contracts in gold rose to 329,800 this week, the highest in CFTC data history



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