USD Net Longs Decline as EUR, GBP and JPY Bearish Sentiment Moderates

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 17th of February showed that investors decreased their net long position on the US dollar from $44.5 billion the previous week to $42 billion against the major currencies. As is evident from the CFTC Sentiment table every currency is still held net short against the USD.

The EUR bearish sentiment moderated further with the net short narrowing $1.1bn to reach $26.5bn, with EUR net shorts still making the bulk of short bets against USD. The decrease in EUR net short position resulted mostly from the narrowing in the gross short positions, hinting at profit taking by investors. The bearish sentiment moderated also for JPY and GBP.

While still comprising the second highest in net short bets at $5.1bn, JPY net shorts narrowed $0.6bn due to mostly an increase in longs, signaling a shift in sentiment following four weeks of short covering. The GBP net shorts fell $0.9bn after a $0.3bn decline the previous week, with a build up in longs and narrowing of gross shorts suggesting a potential bullish shift in sentiment. The net short bets in AUD and CAD remained stable, with AUD net short bets widening $76mln following a decrease the previous week. Investors are still bearish CHF while they further pared back both long and short positions.