CFTC Positioning Report: Speculative bets on the Euro regained pace

The latest CFTC Positioning Report, covering the week to 13 May, captures a period when investors were weighing interest rate decisions from major central banks alongside April’s US CPI release. The data offers a snapshot of market sentiment at a time of heightened focus on inflation dynamics and policy outlooks.

Net long positions in the euro (EUR) rose to their highest level since early September 2024, reaching around 84.8K contracts. Meanwhile, commercial traders—largely hedge funds—boosted their net short positions to approximately 134.3K contracts. Open interest also pushed higher, topping 750K contracts. Despite the rise in speculative longs, EUR/USD extended its decline, falling to fresh monthly lows near 1.1060, its weakest level in several weeks.

Non-commercial traders trimmed their net short positions on the US Dollar (USD) to just over 600 contracts, marking the lowest level in two weeks, even as overall open interest continued to decline. The US Dollar Index (DXY) staged a notable rebound following the Fed’s hawkish hold, briefly testing the key 102.00 level, its highest point in five weeks.

Speculators pared back their net long positions in the Japanese yen (JPY) to a four-week low of around 172.3K contracts. At the same time, commercial traders trimmed their net short exposure to just under 185K contracts, while open interest slipped to a three-week low. Meanwhile, USD/JPY pushed higher, breaking above the 146.00 mark to reach a six-week high.

Net long positions in the British pound (GBP) fell to a two-week low of around 27.2K contracts, accompanied by a dip in open interest. GBP/USD extended its pullback from 2025 highs above 1.3400, retreating toward the 1.3140 area as markets continued to digest the BoE’s split decision on rate cuts.

Speculative net long positions in Gold fell further to around 161.2K contracts, the lowest level since February 2024, accompanied by a drop in open interest. Gold prices edged lower as well, testing the key $3,200 per troy ounce.