CFTC Positioning Report: Dollar bulls regained impulse

Pablo Piovano FXStreet

The most recent CFTC Positioning Report for the week ending June 10 highlights a cautious approach among investors in anticipation of critical US inflation data. This sentiment is further influenced by the ongoing US-China trade discussions in London, alongside the evolving geopolitical risks in the Middle East that are impacting the global landscape.

Speculators intensified their bullish stance on the US Dollar (USD), with net longs increasing for the second week in a row, this time hitting a multi-week peak around 1.4K contracts. In the same line, open interest resumed its uptrend to two-week highs over 30K contracts. Against this backdrop, the US Dollar Index (DXY) remained stable around the 99.00 region, indicating the ongoing caution among traders.

Non-commercial net longs in the Euro (EUR) have increased further, advancing to levels last seen in early September 2024 around 93K contracts. Hedge funds, in the meantime, increased their net short positions to approximately 151.2K contracts, marking the highest level observed since early January 2024. Open interest picked up extra pace and now exceeded 810K contracts, reaching a peak not seen in around two years. EUR/USD maintained its gradual advance and aimed to consolidate above the 1.1400 barrier.

Speculative net longs in the British Pound (GBP) surged to multi-month peaks around 51.6K contracts. The move, however, came in contrast with a decent drop in open interest. GBP/USD treaded water in the upper end of its recent range, hovering around the key 1.3500 zone.

Net long positions in the Japanese Yen (JPY) held by non-commercial players retreated to around 144.6K contracts, the lowest level since early April. Commercial trades, in the meantime, trimmed their bearish bets to around 169K contracts, also the lowest level in several months, all against the backdrop of a decent build in open interest to around 388.2K contracts. The upside impulse in USD/JPY gathered steam, breaking above the ey 145.00 hurdle.

Bullish bets in Gold receded marginally, although they remained at multi-week highs around 187.5K contracts following an acceptable bounce in open interest. Gold prices showed some fresh weakness, revisiting the $3,300 zone per troy ounce in response to investors’ hope of some improvement on the US-China trade front.

Speculative net longs in WTI jumped to nearly 192K contracts for the first time since February on the back of increasing geopolitical effervescence in the Middle East amid the Israel-Iran tension. In tandem with this move, open interest climbed to nearly 2.02M contracts, or multi-year peaks. Prices of the American WTI rose further and retested new highs around the $66.00 mark per barrel.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.