Mon, Aug 02, 2021 @ 06:51 GMT
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Bulls Added Bets on USD Appreciation

Traders added more bets for higher USD, as suggested in the CFTC Commitments of Traders report in the week ended May 29. Net LENGTH for USD Index (DXY) futures added +1 338 contracts to 3 924. During the week, the DXY index gained +1.3%, as the greenback strengthened against major currencies with the exception of Japanese yen.

NET LENGTH for EUR futures plunged -16 707 contracts to 93 037 for the week, as the increase in short positions (+21 674 contracts) outweighed that in longs (+4 967 contracts). Bets on GBP futures gained on both sides but the bulls got an upper hand, leading to an increase, by +3 776 contracts, of  NET LENGTH to 9 477 contracts.

Traditional safe-haven currencies stayed in Net SHORT positions and bearishness exacerbated. Net SHORT for JPY futures soared +5 269 contracts to 8 036 while that for CHF futures rose +6 120 contracts to 43 431. Interestingly, Japanese yen jumped almost +2% against the US dollar, while Swiss franc depreciated modestly against the greenback for the week.

On commodity currencies, NZD futures drifted to NET LENGTH of 1 401 contracts, as the rise in speculative long positions (up +3 868 contracts) tripled that of the shorts (up +1 104 contracts). NET SHORT for AUD futures added +2 123 contracts to 23 235 while that for CAD futures dropped -10 522 contracts to 15 690 for the week. all three currencies depreciated against US dollar during the week.

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