USD Net Longs Decline to Four Week Low

According to the Commodity Futures Trading Commission (CFTC) report covering data up to April 14 US dollar net long positions declined to four week low of 39.69 billion from $40.23 billion the previous week against the major currencies. As is evident from the CFTC Sentiment table the fall in the value of aggregate long US dollar position was once again the result of mainly a decrease in net short euro position. The sentiment improved also toward the Japanese yen. The Swiss franc again is the only currency held net long against US dollar with every other currency still held net short against the US dollar.

The euro net short bets now stand at -$28.28bn after investors narrowed it by $0.81bn as the euro sentiment continued to improve. Euro still makes the bulk of net short positions against US dollar, with changes resulting from increases in both gross long and short positions.

The sentiment towards Japanese yen improved. The yen net short bets narrowed by $126 million as investors increased gross long positions while they did not increase the gross short positions significantly. The yen net short bets at -$2.42bn continue to remain only the fourth highest among the major currencies. Investors pared back risk on British pound, widening the net short positions by $0.15bn. The Pound net short bets at -$3.33bn are still the second highest among the major currencies.

The sentiment towards Australian dollar and Canadian dollar continued to deteriorate as both currencies extended their net short positions to -$3.23bn and -$2.45bn respectively at slower weekly paces of $158 million and $48 million. The Australian dollar net short bets remain the third highest against the US dollar as investors decreased their gross long positions and increased gross shorts.