CFTC Commitments of Traders – USD Weakened against Major Currencies as Market Focused on Global Recovery

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As suggested in the CFTC Commitments of Traders report in the week ended July 14, NET SHORT for USD Index futures added +100 to 5 039 contracts. Speculative long positions slipped -13 contracts and short positions gained +87 contracts. Concerning European currencies, NET LENGTH in EUR futures soared +7 315 contracts to 110 912. NET SHORT for GBP futures dropped -2 822 contracts to 13 586 for the week. NET LENGTH will likely increase further in the coming week. The single currency has extended the rally for a fourth week. While ECB pledged to use the PEPP in full and extend the size if necessary, the market was optimistic about the pace of the recovery and stabilization of the coronavirus outbreak in the region.

On safe-haven currencies, NET LENGTH on CHF futures jumped +3 279 contracts to 7 057. NET LENGTH on JPY futures gained +1 514 contracts to 18 326. Concerning commodity currencies, AUD futures reverted to NET LENGTH of 4 944 contracts. Separately, NZD futures drifted to NET LENGHT of 1 434 contracts during the week. Meanwhile, NET SHORT for CAD futures rose 2 957 contracts to 19 775.

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