Originally published by AxiTrader
The latest positioning report from the CFTC shows that speculators remain confident about the dollar rally.
Euro positioning has shifted back to net short for the first time in over a year. Positioning stood at 5k short vs. 2k long previously. The currency managed to recover in the past two weeks, but it would require a clear break above 1.18 resistance to pave the way for a recovery.
Meanwhile, the pressure on the British pound is growing amid the on-going Brexit uncertainty. Speculators added to short positions, bringing net positioning to 72k short vs. 62k previously.
While speculators generally appear to expect a continuation of the dollar rally, they reduced their yen short positions further. A sudden shift back into safe havens would benefit the yen, and there is currently a lot of uncertainty in the market. Net positioning stood at 47k short, a decrease of 11k compared to the previous week.
Positioning for the commodity currencies:
- Australian dollar short 50k vs short 51k previously
- Canadian dollar short 27k vs short 26k previously
- New Zealand dollar short 25k vs short 27k previously