CFTC Positioning Report: Dollar net longs at multi-week highs
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UNLOCK OFFERThese are highlights of the CFTC Positioning Report for the week ended on July 26th:
- The speculative community increased their exposure to the dollar ahead of the FOMC event on July 27. That said, net longs in the buck reached 4-week highs while the US Dollar Index (DXY) embarked on a consolidative theme around 106.50 during the period under study.
- Gross shorts in the euro advanced for the fourth consecutive week, although the net position eased to 2-week lows. EUR/USD remained somewhat directionless in the wake of the start of the hiking cycle by the ECB on July 21, while poor flash PMI prints reignited rumours of a looming recession in the region, which eventually dragged spot back to the 1.0100 area.
- The safe haven galaxy remained under pressure, as net shorts in the Swiss franc escalated to levels last seen in early June, while USD/CHF grinded lower to the 0.9600 neighbourhood. In addition, the net shorts in the Japanese yen also increased to multi-week highs amidst a leg lower in USD/JPY to the sub-136.00 area.
- In the commodity universe, net longs in gold remained in multi-year lows against the backdrop of the firm tightening plans by the Fed and net longs in crude oil retreated further to an area last visited in early March 2016, as recession talk continued to weigh on traders’ sentiment.
These are highlights of the CFTC Positioning Report for the week ended on July 26th:
- The speculative community increased their exposure to the dollar ahead of the FOMC event on July 27. That said, net longs in the buck reached 4-week highs while the US Dollar Index (DXY) embarked on a consolidative theme around 106.50 during the period under study.
- Gross shorts in the euro advanced for the fourth consecutive week, although the net position eased to 2-week lows. EUR/USD remained somewhat directionless in the wake of the start of the hiking cycle by the ECB on July 21, while poor flash PMI prints reignited rumours of a looming recession in the region, which eventually dragged spot back to the 1.0100 area.
- The safe haven galaxy remained under pressure, as net shorts in the Swiss franc escalated to levels last seen in early June, while USD/CHF grinded lower to the 0.9600 neighbourhood. In addition, the net shorts in the Japanese yen also increased to multi-week highs amidst a leg lower in USD/JPY to the sub-136.00 area.
- In the commodity universe, net longs in gold remained in multi-year lows against the backdrop of the firm tightening plans by the Fed and net longs in crude oil retreated further to an area last visited in early March 2016, as recession talk continued to weigh on traders’ sentiment.
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