The latest CFTC report shows that there have been only minor changes in speculative FX positioning.
Large speculators continue to reduce their EUR long exposure. Net positioning stands at 89k, a 4k decrease from the previous week. The Euro has stabilized after bouncing off 1.15 support, but is still struggling to recover properly. The Italian crisis is likely to weigh on the Euro in the near-term.
GBP net positioning fell from 9k to 7k long. Cable is consolidating around 1.34, and speculators are awaiting further details on Brexit.
Meanwhile, speculators cut their JPY short positions, bringing net positioning to 3k vs. 8k in the previous week. Demand for the Yen has faded slightly, but with tensions still high, the safe havens could get bid any time.
Positioning in the commodity currencies only changed slightly:
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Soaring US yields trigger the wrecking ball effect as yields become a source of volatility for risk, rather than a source of support