CFTC Positioning Report: EUR net shorts climbed to multi-year highs

These are the main takeaways of the CFTC Positioning report for the week ending December 3.

• Speculators remained net sellers of the Euro (EUR), increasing net shorts to levels last seen in early March 2020, near 57.5K contracts. Meanwhile, commercial players continued to be net buyers for the third consecutive week, against the backdrop of rising open interest. During this period, EUR/USD exhibited erratic performance, with bullish attempts capped near the 1.0600 region.
• After six consecutive weeks of being net sellers, non-commercial traders became net buyers of the Japanese Yen (JPY), adding just over 2.3K contracts. Meanwhile, hedge funds reversed the trend and shifted to net sellers amid a modest uptick in open interest. USD/JPY extended its downtrend, reaching the boundaries of the 149.00 region for the first time since mid-October.
• Speculative net shorts in the US Dollar (USD) increased for the fourth consecutive week, surpassing 3K contracts, amid a slight decline in open interest. The US Dollar Index (DXY) lost further momentum, breaking below the 106.00 support level as investors continued to cash out gains from the sharp October-November rally.
• Non-commercial net longs in the British pound (GBP) retreated to levels last seen in late May, near 19.3K contracts, amid the third consecutive weekly increase in open interest. GBP/USD edged higher, revisiting the 1.2750 region, marking three-week highs.
• Speculative net longs in the American benchmark WTI surpassed 201K contracts for the first time since early August, alongside three-week highs in open interest. Crude oil prices faced selling pressure, briefly dipping below the $68.00 mark per barrel before rebounding. This movement occurred amid ongoing geopolitical tensions, increased caution regarding Trump’s potential trade policies, and concerns over China’s struggling economy.
• Non-commercial net longs in Gold climbed to five-week highs, reaching nearly 260K contracts, following another weekly decline in open interest. The price of the yellow metal advanced gradually above the $2,600 mark per troy ounce, driven by a loss of momentum in the Greenback and US yields, as well as expectations of an additional rate cut by the Fed in December.