CFTC: USD longs halved, EUR shorts edged lower – Rabobank

According to CFTC’s Commitment of Traders Report, USD net longs halved last week, hitting their lowest levels since mid-June, notes the research team at Rabobank.

Key Quotes

“Optimism regarding a phase 1 trade deal between the US and China boosted risk appetite and drew attention back to high risk assets. That said, better than expected US economic data lent support to the USD towards the end of last week.”

“Net EUR short positions have edged lower for two consecutive weeks, though strong direction remains absent.”

“Net short GBP positions have dropped to their lowest level since May on hope that the new majority UK government will result in reduced political uncertainty.”

“JPY net positions have held in negative ground for ten consecutive week.”

“CHF net shorts have fallen back, but are likely to remain in negative territory assuming risk appetite holds up in the coming weeks.” 

“CAD net long positions have dropped to their lowest levels since October.”

“AUD net shorts pushed higher last week. News of a China/US phase 1 trade deal is supportive but signs of slowing domestic growth could mean that QE comes into view in 2020.”