As of Tuesday 10th December:
- Large speculators reduced net-long exposure to USD by -$1.6 billion to $18.2 billion.
- On the DXY, traders are their least bullish since July 2018
- Minor weekly changes to net positioning overall. GBP saw the largest, with short exposure falling -7.4k contracts ahead of the UK election.
- Trader were their most bearish on the Swiss franc in 6-months. Whilst yen traders slightly reduced bearish exposure last week, net-short exposure remains near a 6-month high
USD: Whilst still net-long, bullish exposure on the USD has remain subdued and effectively range bound between +10 to +20 billion since July. This is neither a compelling bullish or bearish case, so perhaps we’ll continue to see DXY chop around in ranges until a more divergent theme appears next year between the US and ROW (rest of world).
GBP: Gross longs reached their highest level since April, ahead of Friday’s UK election which saw net-short exposure at its least bearish level since May. Given the 2% rally at the exit polls, we wouldn’t be too surprised to see traders stitch to net-long in this week’s report (whilst data is released on Friday, the report is compiled on Tuesday)
As of Tuesday 10th December:
- Whilst gold bugs saw a slight reduction in bullish exposure, bears remain side lined and account for just 16.9% of all contracts traded
- Bearish exposure on copper is at its lowest level since May, adding weight to the argument for a bullish breakout
- Traders were their most bullish on platinum since August 2016
Copper: Gross shorts have been trending lower since August and, whilst early days, we saw a slight pickup with gross longs last week. Last week’s high saw copper futures trade at their highest level since May, although Friday’s bearish engulfing candle warns of near-term weakness and likely mean reversion. Sill, we’ll see if its upswing since September’s low can push higher over the coming weeks.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.