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USD held in high regard by specs - TDS

FXStreet (Bali) - TDS reviews the latest changes on the CFTC Commitments of Traders Report, for the week ending Tuesday, September 30th, noting that the USD continues to be held in high regard by specs and CTA-type accounts.

Key Quotes

"The USD continues to be held in high regard by speculative investors and CTA-type accounts. The latest Commitments of Traders report shows an increase in implied net USD longs to $37.6bn on the week ending on September 30th from $35.2bn the week prior. This is the most bullish bet on the USD since May of last year and certainly within the largest levels since 2007."

"The most significant change this week was a shift in MXN positioning to -7.3K net shorts from +10.5K net longs the week prior. In turn, the JPY also saw a deterioration of investors sentiment towards it, as an extension of JPY net shorts from -105.4K to -121K was registered during the reporting period. This is the most pessimistic JPY positioning since early January."

"The Dollar Bloc currencies were also listed amongst the casualties. Speculative investors' sentiment towards AUD and CAD deteriorated more markedly, whereas negative sentiment towards NZD was less dramatic. The former saw a shift from net long positions into net shorts; with net AUD longs equivalent to +8.3K contracts shifting to -2.0K net shorts, while +3.1K net CAD longs morphed into -4.6K net shorts. NZD net longs were reduced to virtually zero from +1.8K the week prior."

"Conversely, GBP saw a change in fortunes for the better, as -1.0K net shorts shifted into +3.6K net longs. In turn, there was modest short covering in EUR positioning ahead of the ECB meeting, which saw net EUR shorts reduced from -142.0K to -137.5K. In line with the move on EUR net short contracts, CHF registered short covering to -12.6K from -13.4K prior."

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