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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Barcelona) - The last Commitments of Traders Report showed further demand for USD longs as of Tuesday, November 12th, with Shaun Osborne, Chief FX Strategist at TDS, noting that overall activity among specs was relatively slow, with only 194k net outstanding contracts (roughly half of the typical level over the past two years).

Key Quotes

"However, the trend toward greater USD exposure was nevertheless clear. The implied USD long position more than doubled to USD13.3bn, from USD6bn as of the prior Tuesday."

"A slashing of EUR longs and an extension of JPY shorts were the biggest adjustments this week. Net EUR long positions were halved again to 16.8k contracts, from 33.1k last week (and 70.6k two weeks ago). That’s the smallest position since mid August, and other confirming sign that the trend higher for EUR/USD in recent months has shifted."

"Investors also aggressively boosted JPY short positions for a second consecutive week as the JPY tested key lows against several crosses. Net short contracts jumped to 95.1k as of Tuesday (from 73.8k), which is the largest level since mid-May when USD/JPY was testing its cycle highs at 102. The move clearly shows growing confidence in a weaker JPY, but is also quite extreme and poses the risk of a short squeeze."

"Among the commodity currencies, AUD shorts were notably boosted (to 35.8k contracts, from 25.1k), while positioning in the NZD and CAD were held fairly stable at 10.4k and 16.1k, respectively."
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