CFTC Positioning Report: Net shorts on the Dollar continued to shrink

The latest CFTC Positioning Report for the week ending May 27 shows investors shifting their focus to US hard data amid cautious words from Fed officials and the new trade deals' lack of substance, which is making market participants even more sceptical.

The net short position of Non-commercial investors in the US Dollar (USD) fell to little more than 80 contracts, while open interest rose to thre-week highs. The US Dollar Index (DXY) fell to multi-week lows after continuing its decline from monthly tops above the 102.00 mark and breaching below the key 99.00 support.

Speculative net longs in the Euro (EUR) climbed to two-week peaks around 79.5K contracts. Meanwhile, Commercial players, primarily hedge funds, boosted their net shorts to roughly 132K contracts, also a two-week high. Open interest, in the meantime, surpassed 760K contracts, maintaining the uptrend intact. EUR/USD was able to regain the area slightly above 1.1400 the figure to retreat a tad afterwards.

Speculators have further decreased their net long positions in the Japanese Yen (JPY), bringing them to a seven-week low of just over 164,K contracts. Simultaneously, Commercial traders have raised their net short position to a two-week peak of approximately 183.7K contracts. Concurrently, open interest has climbed to around 377K contracts, marking the highest level since March. USD/JPY fell to four-week lows near the 142.00 level, only to experience a marked bounce afterwards.

Non-commercial net longs in the British Pound (GBP) have risen to approximately 35.4K contracts, a level not observed since late March, accompanied by a decent increase in open interest. GBP/USD demonstrated a strong performance, climbing to new highs just a few pips shy of the 1.3600 threshold.

Speculative net longs in Gold reached five-week highs of approximately 174.2K contracts, coinciding with a decrease in open interest. The precious metal maintained its consolidative phase, consistently hovering around the $3,300 mark per troy ounce against the backdrop of ongoing tariff uncertainty and geopolitical tensions.

Speculators have decreased their net long positions in WTI, reaching multi-week lows with a total of approximately 165.7K contracts aligned with a decline to two-week lows in open interest. Prices of WTI showed volatility, remaining above the significant $60.00 threshold in response to ongoing changes in US trade policy, geopolitical events, and the strategies of OPEC+ regarding output increases.