These are the main highlights of the CFTC Positioning Report for the week ended on September 14th:
- Speculative bullish bets in the dollar increased for the fourth consecutive week and now reached levels last seen back in late February 2020, on the verge of the coronavirus pandemic. In addition, the net longs/open interest ratio approached the 55% level, last seen in mid-May 2020. The US Dollar Index (DXY) traded within a consolidative mood during the week under scrutiny, as market participants were digesting the latest Payrolls figures, while Fed-speakers insisted on a sooner-than-anticipated QE tapering and US yields corrected lower from tops.
- Net longs in the EUR climbed to 4-week highs and the percentage of net longs to open interest also rose to multi-week highs (above 4%), all in spite of the dovish “re-calibration” of the ECB at its meeting on September 9, as well as improved projections of inflation and growth for the next couple of years. EUR/USD, however, receded further from monthly tops and gyrated around the 1.1800 yardstick, which will eventually break in the subsequent sessions.
- Looking at the safe haven universe, JPY net shorts shrank to the lowest level since early August, while speculators shifted to the bearish side on CHF for the first time since May 25.
- After three weeks of navigating within the negative territory, GBP’s positioning turned positive. Cable managed to bounce off lows around 1.3730 sustained by market chatter surrounding a potential hawkish shift in the BoE tone at its next meeting. The EU-UK front coupled with Delta concerns continued to cap any serious bullish attempts the pair.
- In the commodities’ galaxy, net longs in the WTI and gold rose to 2-week highs.
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