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Specs keep increasing bets on the USD - TDS

FXStreet (Bali) - The FX Team at TDS reports the latest changes in the CFTC Commitments of Traders Report, for the week ending Tuesday, noting that the theme of increasingly bullish bets on the USD to the detriment of EUR and JPY continued through the week ending on Tuesday September 2nd.

Key Quotes

"The theme of increasingly bullish bets on the USD to the detriment of EUR and JPY continued through the week ending on Tuesday September 2nd, according to CFTC data for currency futures. Investors and speculative accounts built larger net long positions in the USD, to the tune of $33.5bn implied net longs for a $3 bn increase from the week prior. Aggregate positioning in the USD in the order of $40bn has been a marker of turning points in the past."

"JPY and EUR experienced the largest moves, with net shorts being extended to -117.3K (-102.9K prior) and -161.4K (-150.7K prior), respectively. Remember that at the most severe point of the sovereign debt crisis on June 2012, the common currency had –214K net short contracts. Thus, it should not surprise if investors have extended their bearish positioning ahead of this week's ECB meeting. The Swiss franc also saw a – minor – net short extension to -13.2K net shorts."

"In turn, GBP continues to fall out of favor with speculative investors. Net longs were once again trimmed during the reporting week, ending at +9.5K, the lowest reading since November of last year barring one print in January."

"The G10 commodity currencies experienced mixed performances, with both the AUD and the CAD seeing net long extensions to +49.0K (+41.9K prior) and +9.2K (from +5.7K), respectively. The Kiwi run the opposite fate, as speculative investors and CTA accounts scaled back net longs to +10.2K from +11.8K the week prior. MXN shared the good fortunes of the former, with a net long extension of 2.5K contract to a total of +39.2K net longs."

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