Originally published by AxiTrader
The latest report from the CFTC showed that large speculators have slightly increased their US dollar long exposure in the previous trading week.
Euro net positioning has declined from 141k to 134k long. There have not been any major shifts in euro positioning, as the currency continues to consolidate in a rather tight range.
Meanwhile, speculators added to their pound long positions - bringing net positioning to 40k long (vs. 34k previously).
The Japanese yen has been bid in recent weeks, as the currency benefited from the risk-off sentiment in global markets. Yen shorts were forced to cover their positions, and net positioning has turned positive for the first time in many years. In the near-term, the yen is likely to remain bid and a test of the 100 level just seems like a matter of time.
At the same time, the pressure on the commodity currencies is increasing. Australian dollar net positioning stands at zero, vs. 8k long in the previous week. Speculators have turned bearish on the Canadian dollar as well, with net short positioning jumping from 27k to 32k.
