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Forex pairs in this Article » EUR/USD (Barcelona) - The CFTC released the last catch up report on Wednesday, and as TDS Strategists note, data for the week through Tuesday, October 29th showed mostly small adjustments ahead of the FOMC meeting.

Key Quotes

"Overall, speculators continued to remain net bearish on the USD, and very bullish on the EUR. The implied USD position as of that Tuesday was net short of USD4.2bn, similar to the USD5.0bn net short in the week prior."

"Of the majors, investors were still most bullish on the EUR as of the 29th, with net long contracts at 70.6k (vs. 72.4k the week before), valued at USD12.1bn. The one-sided EUR long positioning and the net short exposure in the USD are clear evidence of why we saw such a sharp selloff in EUR/USD through the balance of that week."

"A less-dovish-than-expected Fed and soft inflation in the Eurozone clearly squeezed EUR longs. We expect a large reduction of the net long EUR positioning in this Friday’s CFTC numbers."

"The largest adjustment by value in positioning in the week through the 29th was a reduction of JPY shorts to a still-large 62.4k contracts (vs. 71.8k last). Even after the trimming of JPY shorts, the net position is still quite large (with a value of USD7.9bn), leaving it at risk of a short squeeze."

"Not surprisingly in the wake of the BoC dropping its tightening bias, an increase in net CAD shorts was the most notable change among the commodity currencies."
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