The CFTC Report- Euro Net Short Climbs to New Highs
The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 22th of July displayed that investor’s bias moved in favor of the US dollar. As we can see at the CFTC Sentiment table the Euro increased its net bearish position to $14.95 billion against the US dollar. Moreover, the Euro had the largest weekly negative change among the major currencies at $-4.29 billion. Only the Japanese Yen and the Canadian strengthened their net position against the US dollar. The net short on the Samurai currency moderated by $1.09 billion and stands now at $-6.64 billion, the Canadian dollar increased its net bullish position to $1.91 billion while the exchange rate is also rising.
Investors also reduced their net long positions on the British pound to $2.93 billion, the weekly change is standing at $1.22 billion and is the second largest bearish weekly change. The GBPUSD found a key resistance and extended in sideways between 1.7179/1.7073. The previous week Bank of England meeting minutes were less hawkish than what has been expected and thus we would be expecting bearish sentiment to continue.
The Australian dollar has the largest net positive position at $3.64 billion while the weekly change was slightly negative indicating some weakness. The AUDUSD has been trading mainly in sideways between 0.9435/0.9326 and therefore has been a battle between the bullish and bearish sentiment. Risk sentiment was mixed as the US stock paused the climbing to fresh highs, geopolitical risk remains high but investors give more importance to earnings report that will reflect any real recovery. The Aussie still holds the largest Long/Short ratio and is now first in terms of Net Long positions size.