Synopsis:

Morgan Stanley reports on recent options and futures market positioning, revealing that tactical investors are predominantly long NZD and GBP while holding short USD positions. The data indicates increased long positions in AUD and CAD, with heightened short positions in USD across various market segments.

Key Points:

1. Options Pricing Data (Week Ending August 30):

   • Long Positions: Investors have shown a strong preference for long positions in NZD and GBP.
   • Short Positions: Increased short positions in USD (DXY) and EUR.

2. Futures Market Activity (Week Ending August 27):

   • Long Positions: Notable additions to long positions in AUD and CAD.
   • Short Positions: Increased short positions in USD (DXY).

3. Overall Positioning Trends:

   • Long: Tactical investors are most long on NZD and GBP. Futures market positioning also shows long positions in EUR and GBP.
   • Short: Tactical investors are short USD (DXY), with futures market positioning showing shorts in CAD and CHF.

Conclusion:

Morgan Stanley's analysis reveals a strategic tilt towards long positions in NZD and GBP, with significant shorting of USD. This positioning reflects current market sentiment and investor strategies, with a notable shift towards AUD and CAD in the futures market.