Originally published by AxiTrader
There were only minor shifts in speculative FX positioning during the past week.
Speculators decreased their euro long exposure, with net long positioning falling from 98k to 90k. The euro has been suffering amid general US dollar strength, but remains quite stable. Ahead of the key European Central Bank (ECB) meeting, volatility should remain fairly low. Traders still have high expectations, and are expecting to see a shift in the ECB monetary policy.
Meanwhile, pound bulls have further cut their long positions. Pound net long positioning fell from 15k to 5k. This shows that FX speculators are increasingly concerned about the political uncertainty and difficult Brexit negotiations.
Yen and Swiss franc positioning remained basically unchanged - at net short 101k (JPY) and net short 5k (CHF).
Canadian dollar positioning saw only major changes, with net positioning standing at 75k long vs 76k previously. However, there have likely been some larger shifts last Friday following the disappointing Canadian inflation and retail sales data. This led to a short squeeze in USD/CAD, which should be reflected in the next CFTC release.
Meanwhile, Australian dollar net long positioning fell from 69k to 62k. The Aussie remains fairly stable, despite overall US dollar strength and other commodity currencies being under pressure.
AUD Positioning