FXStreet (Bali) - Speculative and CTA-type accounts continue to ramp up their aggregate bull position in the USD, according to the latest CFTC data, notes TDS.

Key Quotes

"Speculative and CTA-type accounts continue to ramp up their aggregate bull position in the USD, according to the latest CFTC data. Net EUR, CHF and JPY shorts constitute the biggest bets on the IMM currently, with only relatively modest long positions in the commodity bloc providing an offset. The aggregate long USD position that works out from the positioning plays in the major currencies equates to USD28.9bn, the biggest effective bet on a USD rally since mid-2013."

"Net EUR shorts increased again in the week through August 19th; net speculative EUR shorts totaled -138.9k contracts this week, up form –126.0k in the prior week. This positioning gets the market back to the sorts of levels prevailing in 2012—though we remain well off the absolute net short peak of –214k contracts seen in June of that year. Back then, the ECB saved the EUR and helped trigger a wave of short-covering (President Draghi’s “do all it takes” promise). This time, the ECB seems less likely to ride to the EUR’s rescue, however."

"Net JPY short positioning picked up again to –87.2k contracts (from –81.1k); speculative short positioning remains high but it is within the recent range. Net short bets against the CHF have picked up in recent weeks and probably reflect a pure play on the USD rather than a cross trade, given the CHF’s sustained slide below the 200-day MA through July. The latest week’s data showed modest short covering, however, cutting the position to –15.4k (from –17.3k in the August 12th week)."

"Speculative FX accounts remain positive on the commodity currencies—despite the recent slide in commodity prices broadly. More headwinds may emerge going forward given the intensifying focus on Fed policy prospects. Net AUD longs rose to +36.5k contracts this week (+29.5k last) while net NZD longs were little changed at +12.0k. Net CAD longs were cut aggressively (+7.3k, from +17.9k), however, suggesting that investors took advantage of volatility around the restatement of the July employment report to cut CAD longs. In the MXN, specs went from effectively flat last week to a net long of 12.4k contracts."

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.
Trading Center