FXStreet (Bali) - FXStreet (Bali) - The CFTC specs positioning data for the week ending 3 June 2014 shows further evidence that the latest rise in EUR/USD post ECB has all the hallmarks of a short covering rally.

Key Quotes

"Positioning data in the lead up to the 5 June ECB meeting showed leveraged funds increasing their short bets against the EUR for the fourth consecutive week. Since the May Governing Council meeting when ECB President Draghi indicated that policy action was possible, leveraged funds sold 71.8k net contracts worth USD12.4bn. This change in positioning indicated that the market was well positioned for the June ECB meeting. The next set of data will tell us the extent that leveraged funds have unwound their EUR short positions."

"The increase in EUR shorts, alongside a rise in JPY net short positions, resulted in a reduction in net short positions against the US dollar by USD3.1bn. Overall short positions against the US dollar implied by the CFTC data stands at USD3.0bn, its lowest level since mid-February."

"Despite falling iron ore prices, net long positions in AUD rose by 5.3k contracts (USD0.5bn) to 33.7k (USD3.1bn). There were negligible changes in NZD positioning."

" Net long positioning in GBP reduced by 2.6k contracts to 115.0k, but remains at elevated levels. After five consecutive weeks of increasing their bets on Swiss franc depreciation, leveraged funds reduced some of their net short positions against CHF by 2.3k contracts to 6.8k."

"Bullish bets on gold continue to be pared back. Net long non-commercial position in gold fell by 15.8k contracts to 76.9k. This is the lowest net long position since late-January, when gold prices were trading at similar levels to now. Net long positioning in crude oil fell by 10.2k contracts to 433.8k. Despite the well-publicised decline in dairy prices, non-commercial net long position in milk rose to 4.7k contracts, the highest since mid-2008."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center