Hedge Funds Go Long the Euro, Sell Peso Positions

Hedge funds have used the last week to again exit their favorite crowded trades. While Reuters may think that hedge funds are still bullish on peso and are maintaining their longs, the holdings in CFTC futures says otherwise. Yet again leveraged funds are cutting their long bets in MXN—longs in peso futures and options were slashed by 26 percent to 59,441 contracts between the period of June 5 to June 11 . This is now an almost 50 percent reduction in long bets in only two weeks—longs came up to 114,051 contracts until May 28. At the same time hedge funds…