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USD long bets trimmed 1st time in more than a month - TDS

FXStreet (Bali) - The FX Team at TDS reviews the latest changes on the CFTC report, for the week ending Tuesday, September 9th, noting that specs and CTA accounts trimmed bullish bets on USD for the first time in more than a month.

Key Quotes

"Speculative and CTA accounts trimmed their bullish bets on the USD for the first time in more than a month in the week through September 9th, according to the latest CFTC data. In aggregate, positioning in the major currencies equated to a net long bet on the USD of USD29.4bn this week, down from USD33.5bn in the week through September 2nd. The cumulative bull bet on the USD that has evolved here is not excessive but has been nearing the peaks seen over the past two years."

"Spec accounts trimmed very slightly the aggressive bear bet on the EUR that has accumulated over the past two months, reducing net EUR short positions to –157.5k contracts, from –161.4k in the prior week. Again, while the net EUR short position remains some way off the 2012 extreme, (-214k contracts), the recent buildup of net shorts is sizeable. The fact that the EUR dipped to new lows and then rallied nearly a big figure (in spot terms) Tuesday likely encouraged some modest short covering here."

"Positioning shifts were relatively more pronounced in the JPY—part of the cohort of currency shorts that have boosted the USD recently—and the GBP this week. Net JPY shorts dropped by a significant 17k contracts in the week (to –100.6k contracts) while investors rather surprisingly ignored the past weekend’s volatility in the GBP resulting from the Scotland independence opinion poll to ramp up net GBP longs to +26.7k contracts (from +9.4k contracts in the prior week)."

"Net CAD longs increased slightly in the week to +11.6k (+9.1k prior); positioning here remains more or less neutral. Weakness in the CAD over the balance of the week is likely to see more shorting activity in next week’s report. Ditto for the AUD, which has been the major under-performer in the major currency space this week; bargain hunters may not be willing to step in front of this week’s decline just yet. Net longs stood at +41.2k this week, down from +49k in the prior week."

"Net positioning in the NZD, CHF and MXN were more or less unchanged on the week."

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