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NZD Net Position Bumped Higher as Markets Revise RBNZ Expectations

CFTC
  • A notable improvement in the GBP net position as per Friday’s CFTC data, with ~16k net contracts added to improve the net position by 8.1% of open interest. This shifted the net long to over 50k, nearing the highest level of the past year.
  • Markets may also be weary of the bump higher in the NZD net position which, while smaller than the improvement in GBP, puts the positioning Z-score for NZD at the highest among all currencies surveyed. Markets added just over 2,500 in the week ending Feb 13th, putting the net position at 8.1% of open interest – just below the 52w high of 11.5%.
  • Improvement in NZD net position comes alongside the shifting views on RBNZ among the sell-side in recent weeks, with ANZ seeing two further hikes ahead, and BNZ delaying their call for easing in New Zealand.
  • The EUR net position continue to fade, albeit at a slower pace. Markets trimmed another 9k contracts from the net long, putting the total position at the lowest in 12 months. This tilted the positioning Z-score to -2.32, the lowest among the panel of currencies.
  • MXN net improved by 4.6% of open interest, while JPY was the net loser, as markets added 27k contracts to the net short.
  • Full update here:

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