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SS aud/usd 0.9870, S/L 0.9885, TP 0.9825
Interesting changes in overall market positioning
Written by Sean Lee
May 20, 2012 at 21:03 GMT
EUR shorts, when considering both CFTC and prime broker reports, are at record levels
GBP longs are at the highest levels in almost 5 years
The AUD market has swung from long to small short
Interestingly, the CHF market is back to square
There will have been some positional adjustment on Friday which will have reduced these positioning levels.
If you like contrarian plays, then sell GBP/AUD rallies and get long EUR/CHF!
Asian market wrap: EUR recovery continues as market mood improves
Written by Sean Lee
May 21, 2012 at 04:01 GMT
Chinese Premier says focus must be on growth
German press: Schaeuble still sees chance of Greece staying in EMU
Nothing new in G8 statement, affirm that Greece should stay in EMU
UK home prices stay unchanged
BOE Cohrs: UK banks strong enough to withstand Greek EZ exit
Thai GDP better than expected at +0.3% YoY
Stockmarkets recover some ground, with Korea +0.8%, China, Japan and Australia +0.25% but HK falling again, -0.4%
Gold $1595/oz; Oil $92/bbl
The EUR recovery which started on Friday has continued during Asia, with the single currency making new short-term highs against the USD and the GBP. CFTC and interbank positioning show that the EUR market was getting overly short, and this relief rally is being caused by short-covering rather than any improved news. The statements from Premier Wen regarding growth and from the BOE adviser, re UK banks, both helped risk sentiment.
EUR/USD closed last week near 1.2770 and spent the early interbank session trading between 1.2750/80. Tokyo opened with a short-covering rally and after topping out near 1.2810, its been fairly quiet since. Ranges: 1.2747/1.2812
USD/JPY has been very quiet in a tight range, 79.08/22.
AUD/USD did move around a bit early with flows in the crosses, (primarily
EUR/AUD buying after a strong technhical open to the week), but it has also settled down into a very quiet session. Hedge funds continue to sell the AUD especially on the crosses but sentiment did improve somewhat today. Ranges: .9797/.9876
Cable 1.5791/1.5838, EUR/CHF 1.2008/13