The Crowded “Long-Dollar” Train Just Got Even More Crowded

With two weeks of weakness, one might be forgiven for thinking the crowded “long-dollar” train had let off a few passengers (after its post-Bretton Woods record-breaking streak of gains).

 

 

But no, as Goldman notes, that train just got even more crowded… as overall USD speculative net positioning is now the most long it has been in recent memory.

 

 

EUR net shorts increased $1.4bn to $24.6bn.

JPY net shorts decreased $1.2bn on the week to $11.8bn.

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As an aside, just as we warned, the collapse in short-end yield in the last 2 weeks followed the most net short speculative positioning in 2Y futures since 2007…

 

…and is likely not over yet… as even though the net short has been unwound extremely rapidly, in 2007, the yield compression did not stop there.

 

Source: Goldman Sachs

via Zero Hedge http://ift.tt/1vRGtDz Tyler Durden