USD net long positions decreased slightly, driven by an increase in short positions – Rabobank

Analysts at Rabobank assess the latest CFTC Commitment of Traders report:

Forecasters are confident BoC rates will remain on hold this week

"USD net long positions decreased slightly. This was driven by an increase in short positions. Lower than anticipated JOLTS printed on Tuesday and may act as support for the Fed to pause future rate hikes."

"EUR net long positions have decreased. This was driven by an increase in short positions as the market evaluates recent weak Eurozone economic data and doubts spread as to the ability of the ECB to hike rates further."

"GBP net speculators’ long positions increased for the third consecutive week. This was driven by an increase in long positions. The market continues to price in further BoE rate hikes."

"JPY net short positions have increased for the second consecutive week. This was driven by a contraction in long positions, and an increase in short positions, given shifting expectations that the BoJ may not prove more dovish than previously thought."

"CHF net shorts have fallen for the fourth consecutive week. Short positions decreased slightly as the SNB remains hawkish."

"CAD net shorts have increased slightly. This was driven by a contraction in long positions. Surveys suggest forecasters are confident that BoC rates will remain on hold this week."

"AUD net short positions have increased for the second consecutive week. This was driven by an increase in short positions and has driven the volume of short positions to an all-time high. Weak Chinese data is impacting the AUD, although Australian fundamentals are holding up relatively well."