CFTC Position Watch - King Dollar: Speculators increase bet on rising Greenback

Market Analysis /
Milan Cutkovic / 15 Oct 2018

The latest CFTC report showed that FX speculators clearly remain bullish on the US Dollar, despite the recent loss in momentum. Rising rate expectations in the US and an increase in geopolitical risks means that the Greenback remains King...for now.

EUR net positioning stood at 16k short - an increase of 9k compared to last week. Concerns about the political crisis and growing rate divergence between the US and the Euro Zone are keeping the currency under pressure.

EUR
EUR

Meanwhile, GBP net positioning jumped from 59k short to 61k short. Given the on-going uncertainty around the Brexit negotiations, it is surprising that the British Pound is holding so well. For GBP bulls, the 1.30 level is crucial, as a clear break below that level would pave the way for a retracement towards 1.27.

GBP
GBP

JPY net positioning remained almost unchanged at 115k short - an increase of 1k compared to the previous week. Rising rate expectations caused speculators to bet against the Japanese Yen. However, the current risk-off sentiment in the market is preventing a larger JPY decline.

JPY
JPY

 

Commodity FX positioning:

AUD short 73k vs short 72k previously

CAD short 12k vs short 19k previously

NZD short 34k vs short 31k previously

AUD
AUD

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