With two weeks of weakness, one might be forgiven for thinking the crowded "long-dollar" train [4] had let off a few passengers (after its post-Bretton Woods record-breaking streak of gains).
[5]
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.
[6]
EUR net shorts increased $1.4bn to $24.6bn.
JPY net shorts decreased $1.2bn on the week to $11.8bn.
* * *
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 [7]...
...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
