Originally published by AxiTrader
The latest CFTC report showed that large speculators have maintained their bearish outlook for the US dollar. Euro positioning jumped from 126k to 138k net long, an increase of 12k. The break above 1.23 in EUR/USD gave euro bulls some hope that the rally will continue.
Meanwhile, pound net positioning stood at 13k long, up from 8k long in the previous week. Speculators remain more cautious here, as uncertainties around Brexit continue to weigh on the pound.
Are the yen bears finally retreating? Amid the broad risk-off sentiment and fears of a trade war, being long USD/JPY is not particularly wise, even with the wide rate differentials between the US and Japan. Speculators continue to cover their yen short positions, with net positioning falling from 108k to 97k short.
Positioning did not change a lot in the commodity currencies. While the dollar weakness is preventing larger losses, the risk-off sentiment is rather negative for Australian dollar, New Zealand dollar and Canadian dollar. Australian dollar positioning stood at 10k long (vs. 12k long previously), while Canadian dollar positioning decreased from 23k to 22k long.
