Originally published by AxiTrader
The latest CFTC report showed only minor changes in speculative FX positioning.
Speculators slightly decreased their euro long positions, bringing the net positioning down to 126k long (vs. 128k previously). Nevertheless, despite the failure at 1.25 and recent pullback, there has not been much position covering from euro bulls.
Pound bulls are not in such a strong position. Net positioning declined from 15k to 8k long, as the decline below 1.40 in GBP/USD led to concern.
Speculators remain heavily short the Japanese yen, despite the 500+ pips retracement in the recent weeks. The key level to watch is 105. A clear break below that level would likely force a larger number of yen shorts to capitulate. Yen net positioning fell from 115k to 108k short in the last week.
Looking at the commodity currencies, the changes were as follow:
- Australian dollar net positioning: 12k long vs 9k long previously
- Canadian dollar net positioning: 23k long vs 33k long previously
- New Zealand dollar net positioning: 1k long vs 2k short previously
New Zealand dollar positioning has switched back to net long, but speculators continued to sell the Aussie and Canadian dollars.
