TD Securities - "Speculative currency accounts on the IMM cut back long exposure to the USD for the fourth week in row, with a net addition to the long EUR position, and a reduction in the AUD and JPY net short positions the biggest contributors. Overall, the implied USD long was reduced to USD16.2 bn as of Tuesday, August 13th, from USD20.5 bn in the week prior.
The largest adjustment by value this week was an addition to the net long EUR exposure. The long position jumped to 16.1k as of Tuesday, from 6.1k in the week prior. June was the last time EUR positioning stood close to these levels, and at that time the positioning only remained net long for two weeks before returning to the familiar short that has been much more common over the past two years.
A trimming of the record short AUD position was the second largest shift by value, with net short contracts cut to 62.7k, from 76.8k. Notwithstanding the reduction in the short position, it remains at a level that is vulnerable to a short squeeze.
In a similar sense, JPY shorts were also trimmed (to 74.5k contracts from 80.2k), but are still at an extreme at risk of a short squeeze."