Originally published by AxiTrader
The latest report from the CFTC showed that speculators have slightly decreased their euro long positions. Nevertheless, net positioning remained elevated at 139k. Broad dollar weakness continues to support the euro, although we could see some profit-taking ahead of the ECB meeting on Thursday. The central bank could try to talk the currency lower.
Pound positioning remained unchanged at 26k long. Meanwhile, speculators cut their yen short positions from 126k to 119k. The US dollar weakness forced some of the dollar/yen bulls to capitulate as well. A clear break below 110 would signal a deeper correction, to at least 108.
Despite the broad dollar weakness and risk-on sentiment in global markets, speculators are not too bullish on the commodity currencies. Canadian dollar long positioning only increased by 1k to 18k, while Australian dollar positioning increased from 5k to 10k.