Goldman with the note. Neutral DXY, long EUR and short JPY is classic risk on positioning for forex. If a growth scare takes flight then the safe-haven flows will be violent:
In the week ending July 27, non-commercial traders added $2.7bn to USD net length. In the previous week, after net purchasing $4.4bn USD, non-commercial traders turned net long USD for the first time since March 2020. Both asset managers and leveraged funds appear to have contributed to the net Dollar purchases. Non-commercialt trader s also net purchased a small amount of CHF, while net selling EUR,CAD,JPY,AUD,GBP,and NZD. Asset managers continued to net purchase USD over the week, against net sales of EUR,JPY,AUD, and CHF. They were also net buyers of CAD,GBP,NZD,MXN, and RUB. Leveraged funds also continued to net purchase Dollars, against net sales of CAD,GBP,NZD,CHF, and RUB. They also net purchased JPY,EUR,AUD,and MXN.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
