Originally published by AxiTrader
The latest CFTC report showed that long positioning in the euro reached a fresh record high. Speculators added 36k long contracts, bringing net positioning to 128k long. The breakout above 1.20 likely attracted further buying from speculators. It remains to be seen how far the euro rally can extend or whether the ECB will try to slow it down. Meanwhile, the FX market hasn´t been so bullish on the currency in a long time.
When looking at the recent price moves, one would have expected to see larger shifts in FX positioning. However, while the speculators remain clearly bullish on the euro, there are no clear signs of US dollar bearishness in the other majors. Yen short positioning increased from 116k to 122k this week. Meanwhile, pound long positioning only increased from 13k to 16k.
Speculators remain cautious about the commodity currencies as well. Canadian dollar long positioning has decreased to 15k (was above 50k only a few weeks ago). Meanwhile, speculators still have a negative outlook for the Aussie dollar - with net positioning at short 20k vs. 14k previously. New Zealand dollar net positioning stands at 17k short (vs. 18k short previously).
