There was near-unanimous liquidation by selling in the USD longs in all the contracts we review except the SF, and the New Zealand USD. Selling of the USD by those previously short in the pound and the euro were the most active. Specs, however, have more selling of the USD before they can become long the two European currencies.
The biggest short remains in the yen. Although there was a small reduction in the yen short, it remains at 110.5. Market action early in the period put some pressure on the shorts, but the yen weakened toward the end of the week.
Trade in the SF is baffling. Last week were long the SF, by .6K contracts and this week they moved to a 11.4K short. This is a big one-week move for such a small contract.
There has been some short covering in the pound but is very orderly. Though the pound has been working higher, there is no sign of a panicky short squeeze.
The biggest short remains in the yen. Although there was a small reduction in the yen short, it remains at 110.5. Market action early in the period put some pressure on the shorts, but the yen weakened toward the end of the week.
Trade in the SF is baffling. Last week were long the SF, by .6K contracts and this week they moved to a 11.4K short. This is a big one-week move for such a small contract.
There has been some short covering in the pound but is very orderly. Though the pound has been working higher, there is no sign of a panicky short squeeze.