EFTA Document EFTA01475276

Asia FX: Positing on positioning The sharp rebound in Asian currencies in recent days can trace its roots to three drivers: 1) market re-pricing of the Fed after the weak NFP; 2) a more benign view of CNY ahead of the SDR review, and given better China reserves data, and stronger fixings; 3) stretched long USD/Asia positioning. In this note, we take stock of a range of positioning metrics to gauge how far the unwind has run. • Long USD/Asia NDF positioning has largely been cleaned out. Th