Synopsis:

Recent positioning in FX options and futures markets shows increased bullishness on EUR and AUD, while bearish sentiment continues on NZD, CAD, and to some extent, JPY and CHF. Tactical preferences diverge across asset classes.

Key Points:

• FX Options Market:

  • Investors added long AUD and EUR exposure.

  • Reduced long NZD and NOK positions versus EUR.

  • Tactical investors are now long SEK and NOK (vs. EUR).

  • Still positioned short JPY and USD (DXY).

• Futures Market:

  • Investors added long GBP and EUR positions.

  • Increased short NZD and CAD exposure.

  • Positioning shows long EUR and JPY, and short CAD and CHF.

Conclusion:

Morgan Stanley notes a growing bullish tilt toward EUR across both markets, while AUD is preferred tactically in options. Meanwhile, NZD and CAD remain under pressure from both speculative traders and macro sentiment. The short USD bias in options contrasts with a more neutral-to-bullish JPY futures positioning, highlighting divergence in timeframe or investor type.