Euro Net Long Remains the Biggest

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 1st of April revealed that the trend of currencies’ sentiment remained mostly the same compared to the previous report. The Euro bullish sentiment moderated against the US dollar for one more week on Euro-zone deflation risks. Despite that Euro weekly change has been the second largest negative change among major currencies, the common currency still maintains the greatest net long position against the US dollar. At the same time the Japanese Yen net short position remains the biggest for another week at minus $10.68 billion, increasing weekly by $2.27 billion. Moreover, the samurai currency had the lowest long/short ratio indicating that negative bias is strong however triggering some contrarian feelings.

Furthermore, the Canadian dollar negative bias resumed with net short increasing by $0.38 billion to minus $3.35 billion. On the other hand the British pound bullish bias increased slightly by $0.42 billion against the US dollar. Lastly, bearish sentiment remains with the Australian dollar though it can be easily changed given that net short stands at minus $0.45 billion. In the reporting week the kangaroo currency weekly change has been the strongest and that could be an early signal for negative bias reversing.

Lastly, the biggest long/short ratio was built by the Swiss franc according to the latest report. This dynamic has been the same like the previous report but the CHF net long has been around $2.01 billion in the last three CFTC reports. The second largest long/short ratio is with the British pound which is gradually building its bullish sentiment in recent weeks. The net long at GBP is making a new high but exchange rate failed to rise to new high as it is indicated by GBP position chart.