CFTC Positioning Report: Dollar longs extended further
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UNLOCK OFFERThese are the main highlights of the CFTC Positioning Report for the week ended on September 21st:
- Speculators extended their long exposure in the dollar to levels last seen in early November 2019. Investors quickly digested (and left behind) the softer-than-expected US inflation figures for the month of August, focusing instead on the solid prints from Retail Sales during the same period. Indeed, the latter reinforced the case of the strong economic recovery backed by consumer spending and lent extra oxygen to both the buck and yields ahead of the key FOMC event due the following day of the cut-off date. The percentage of net longs to open interest remained around the 55% for the second week in a row.
- Gross shorts in the euro rose moderately in comparison with gross longs, taking the net longs to 3-week lows just above 12K contracts. The net longs on open interest dropped to the 1.80% region, area last visited three weeks ago. The period under scrutiny was dominated by dollar dynamics, while the Financial Times’ story suggesting the ECB could hike rates in 2023 did not take a hold among traders. EUR/USD, in the meantime, extended the sharp downtrend well south of the 1.1800 level.
- Net shorts in the Aussie dollar increased to the highest level on record above the 85K contracts. The upside momentum in the dollar coupled with concerns around the Chinese potential slowdown of the economic recovery and the dovish stance from the RBA all combined to kept AUD well under pressure. AUD/USD grinded lower to the vicinity of 0.7200 during that week.
- The speculative community returned, albeit slightly, to the negative territory when comes to the British pound. Uncertainty around the progress of the Delta variant, Brexit concerns and the firm note in the dollar weighed down on the quid, dragging Cable to the sub-1.3700 region.
- In the safe haven galaxy, net shorts in the Swiss franc increased to levels last seen in mid-December 2019, while net shorts in JPY went down to the area last registered in early August.
- Net longs in gold receded to mid-August levels amidst the push higher in the greenback and US yields. The precious metal remained under pressure and tested the vicinity of $1,740 just to attempt a moderate rebound soon afterwards.
These are the main highlights of the CFTC Positioning Report for the week ended on September 21st:
- Speculators extended their long exposure in the dollar to levels last seen in early November 2019. Investors quickly digested (and left behind) the softer-than-expected US inflation figures for the month of August, focusing instead on the solid prints from Retail Sales during the same period. Indeed, the latter reinforced the case of the strong economic recovery backed by consumer spending and lent extra oxygen to both the buck and yields ahead of the key FOMC event due the following day of the cut-off date. The percentage of net longs to open interest remained around the 55% for the second week in a row.
- Gross shorts in the euro rose moderately in comparison with gross longs, taking the net longs to 3-week lows just above 12K contracts. The net longs on open interest dropped to the 1.80% region, area last visited three weeks ago. The period under scrutiny was dominated by dollar dynamics, while the Financial Times’ story suggesting the ECB could hike rates in 2023 did not take a hold among traders. EUR/USD, in the meantime, extended the sharp downtrend well south of the 1.1800 level.
- Net shorts in the Aussie dollar increased to the highest level on record above the 85K contracts. The upside momentum in the dollar coupled with concerns around the Chinese potential slowdown of the economic recovery and the dovish stance from the RBA all combined to kept AUD well under pressure. AUD/USD grinded lower to the vicinity of 0.7200 during that week.
- The speculative community returned, albeit slightly, to the negative territory when comes to the British pound. Uncertainty around the progress of the Delta variant, Brexit concerns and the firm note in the dollar weighed down on the quid, dragging Cable to the sub-1.3700 region.
- In the safe haven galaxy, net shorts in the Swiss franc increased to levels last seen in mid-December 2019, while net shorts in JPY went down to the area last registered in early August.
- Net longs in gold receded to mid-August levels amidst the push higher in the greenback and US yields. The precious metal remained under pressure and tested the vicinity of $1,740 just to attempt a moderate rebound soon afterwards.
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