CFTC Positioning Report: EUR net longs picked up pace

Pablo Piovano FXStreet

The Commodity Futures Trading Commission (CFTC) data for the week ending August 19 show the FX market navigating choppy waters. Traders stayed cautious on the trade front, while prudence ahead of the Jackson Hole Symposium began to set in and unease over the Trump–Fed spat continued to build.

Speculative net longs in the Euro (EUR) climbed to a three-week high of about 118.7K contracts. At the same time, institutional players eased off their shorts, trimming them to a two-week low near 166.4K contracts. In addition, open interest ticked higher for a second straight week, edging up to roughly 825.2K contracts. Still, EUR/USD stayed choppy, stuck in a 1.1650–1.1700 range as traders kept their guard up.

Speculators trimmed their US Dollar (USD) shorts to just under 6K contracts, though positioning is still hovering near multi-year extremes. Open interest, meanwhile, slipped to a two-month low around 29K contracts. The US Dollar Index (DXY) stayed stuck in its familiar 97.50–98.50 range, mirroring the broader wait-and-see tone across the FX space.

Non-commercial traders lifted their Japanese Yen (JPY) net longs to about 77.6K contracts, the highest in two weeks. At the same time, hedge funds and other commercial players leaned further bearish, pushing their shorts up toward 80K contracts, also a two-week high. Open interest moved the other way, slipping to a two-week low around 349K contracts. Against that backdrop, USD/JPY stayed locked in its month-long consolidation between 147.00 and 148.00.

Speculators cut back further on their pound shorts, trimming net positions to about 25.2K, the lowest in three weeks. In the opposite direction, open interest climbed to multi-week highs just under 220K contracts. GBP/USD eased off after hitting monthly highs in the boundaries of 1.3600 the figure on August 14.

Speculative net shorts on the Australian Dollar (AUD) increased to levels last seen in late April 2024 nearly 95K contracts, while open interest advanced to more than two-month highs just below 186K contracts. AUD/USD came under pressure after hitting monthly tops around 0.6570 in the wake of the RBA’s hawkish cut, receding toward the mid-0.6400s.

Non-commercial net longs in Gold receded to six-week troughs around 212.6K contracts amid the second consecutive downtick in open interest, this time to around 438.5K contracts. Prices of the precious metal traded in a bearish fashion, coming close to the key $3,300 zone per troy ounce, where some contention appears to have emerged.

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

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: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

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.