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CFTC Position Watch - Speculators increase bearish bets on British Pound; expect continuation of Dollar rally

Market Analysis /
Milan Cutkovic / 13 Aug 2018

The latest positioning report from the CFTC showed that speculators continue to bet on an extension of the Dollar rally.

EUR net positioning stood at 11k long, a decrease of 12k compared to the previous week. The Euro is suffering from weak rate expectations and the broad risk-off sentiment.

EUR
EUR

Speculators reduced their JPY short positionings, bringing the net positioning to 63k short (vs. 68k short previously). The Yen is currently in strong demand as traders are buying safe havens. The next CFTC report is therefore likely to show a sharp decrease in JPY short positions. A clear break below 110 would pave the way for further losses, with the next notable support level then at 108.

JPY
JPY

Meanwhile, the pressure on the British Pound is growing. The market sees a no-deal Brexit as possible, which could have severe consequences for the UK economy. Speculative positioning is reflecting the bearish GBP sentiment, with net positioning at 59k short (vs. 47k short in the previous week).

GBP
GBP

Positioning for the commodity currencies:

- AUD short 54k vs short 51k previously

- CAD short 25k vs short 32k previously

- NZD short 25k vs short 24k previously

AUD
AUD

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