Originally published by AxiTrader
The latest CFTC report showed only minor shifts in FX speculative positioning.
The US dollar regained some strength last week, although this might have been more position covering in euro and the pound, rather than a proper shift in market sentiment.
Euro net positioning increased by 4k from 147k to 151k long. Meanwhile, pound net positioning jumped from 43k to 48k. However, plenty of pound bulls were forced to exit their long positions after the CPI read and Mark Carney´s dovish comments.
Yen net positioning shifted back to long (3k) vs. 4k short in the previous week. However, with the improvement in risk appetite, the demand for the yen is likely to decrease in the near-term.
Speculators have added to their New Zealand dollar long positions, while the net short positions in Australian dollar increased (from 3k to 10k). Canadian dollar shorts booked some profits, as the bounce in oil prices supported the currency.
