Japanese Yen Significantly Reduces Bearish Bias

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to 18th of March displayed that bullish sentiment continue to strengthen towards the Euro. In addition the Swiss Franc net long is increasing for another week. At the same time the negative bias enhanced for the Canadian Dollar to minus $6.3 billion against the US Dollar with the exchange rate breaching cap at 1.1222.

Moreover, the Japanese Yen negative bias was significantly unwound by $4.5 billion to minus $7.5 billion due to risk aversion up to the time of data release. The British Pound bullish bias did not change much against the US Dollar. Lastly, bearish sentiment remained steady with the Australian Dollar, without any significant weekly change taking place.

The Japanese Yen had the biggest weekly change this time. The net short position decreased to $-7.5 billion, which is the lowest net short amount since October 2013. The USDJPY attempted to drop below support at 101.21 by 18th of March but failed and consequently clawed back losses to 102.68, thus negative bias could resume by the next CFTC report.

The biggest negative weekly change took place on the Canadian Dollar reflecting the bullish trend of the USDCAD. Moreover, the USDCAD continues its bullish development followed consistently by market sentiment which is negatively building on the Canadian Dollar.