The CFTC Report- Euro and Japanese Yen Ease Bearish Bias
The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 22nd of September showed that investors eased slightly their net long position on the US dollar from $31.7 billion the previous week to $31.4 billion against the major currencies we see on the CFTC Sentiment table. The Euro and the Japanese yen net short diminished while elsewhere the weekly negative sentiment prevailed.
More specifically, we can see at the CFTC Sentiment table that the net short position on the Euro it remains the highest among major currencies at $22.21 down from previous week net short at $25.47 billion, the bearish sentiment faded by $3.26 billion. Moreover, the Euro bearish momentum moderated because net short positions is at its highest since June 2012 thus Euro bears are becoming rare in market. The Japanese Yen comes in net short bets standing at $9.70 billion down from $11.85 billion the previous week. Like the Euro the Yen net short eased however on Wednesday the Japanese Yen ex rate declined against the US dollar thus we would expect refresh of the bearish bias. As we can see the at the Net Long/Short Positions bar chart the largest negative bars are on the Euro and Yen while on the Weekly Change bar chart the Euro and the Yen diverge. That could be considered as a warning sign for the bears.
Elsewhere, the British pound shifted to bearish bias with the weekly change being the highest among major currency pairs, standing at $3.36 billion as Scots vote uncertainty triggered capital outflow, GBP net position stands now at $-0.67 billion. Concerning commodity currencies the Australian dollar eased its net long position from $3.79 billion the previous week to $2.01 billion. The Canadian dollar also decreased slightly its net long position by $0.37 billion to $0.69 billion. We are leaving behind us an eventful week, the British pound is becoming stronger after the No vote for Scot independency and the EURUSD provides some technical signals of bullish divergence. The US dollar remains strong but a US dollar gauge against other major currencies has been limited by a key resistance and that could add pressure on greenback trading.
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