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Last week, investors added long positions to the Japanese yen (FXY) and the British pound (NYSEARCA:FXB), increased short positions in the Norwegian Krone vs. the Euro (FXE) and the U.S. dollar (DXY), according to options data by Morgan Stanley.
The Japanese yen (FXY) had a week change in options positioning of more than 40%, the British pound (FXB) of about 39%, and the Euro (FXE) of about 20%.
Within futures, US. dollar shorts were bought against the British pound (USD:GBP), and the Australian dollar (USD:AUD).
In addition, “options data suggest that U.S. dollar positioning is short, while data from the futures market point to long U.S. dollar positioning,” said Strategist Zoe. K. Strauss.
Lastly, last week, speculative U.S. dollar (DXY) futures positioning was reduced to 18.8% from 24.8% of open interest, MS analysts said.
The Euro and the Yen saw the largest improvement in MS’s Daily Sentiment Index, while the U.S. dollar deteriorated the most within the G10.