Originally published by AxiTrader
The latest CFTC report showed some minor shifts in FX speculative positioning.
After several weeks of cutting euro short positions, speculators have added 3k in long positions in the previous week, bringing net positioning to 37k long. Euro bulls are showing a bit of optimism after the major support level at 1.15 held. Volatility is expected to remain high this week, with several ECB members scheduled to speak.
Meanwhile, speculators added to pound short positioning. Net positioning currently stands at 29k, an increase of 7k compared to the previous week. Given the political uncertainty in the country, the pressure on the British pound is likely to increase in the near-term.
Yen net positioning remained relatively stable at 39k, an increase of only 3k compared to the week before. Concerns about a potential trade war have declined somewhat, which reduced the demand for the safe haven yen.
Some notable changes in commodity FX positioning:
- Canadian dollar net positioning 49k short vs 33k short previously
- Australian dollar net positioning 39k short vs 41k short previously
- New Zealand dollar net positioning 26k short vs 18k short previously
Speculators might have turned too bearish on the Canadian Dollar too quickly, considering the recent US dollar weakness, BOC expectations and rising oil prices.
