As suggested in the CFTC Commitments of Traders report in the week ended November 20, NET LENGTH in USD Index persisted although bets were trimmed on both sides. All other major currencies stayed in NET SHORT positions. This came in line with the FX movement that the greenback strengthened against major currencies with the exception of Swiss franc. Speculative longs on USD index dropped -2 710 contracts while shorts slipped -1 537, reducing the NET LENGTH, by -1 173 contracts, to 39 340 contracts.

Concerning EUR and GBP futures, speculative long positions for the former dropped -4 227 contracts while shorts gained +5 983 contracts, raising NET SHORT to 47 229 for the week. NET SHORT for GBP futures decreased -3 629 contracts to 43 478. Bulls and bears shank their bets on sterling last week. Although UK and EU agreed on the final draft of the Brexit Withdrawal Agreement, ratification by the UK Parliament next month is required. PM Theresa May has been using threat tactics, focusing on the drawbacks of a no-deal Brexit, to the deal done.

 

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On safe-haven currencies, Net SHORT for CHF futures gained +1 023 contracts to 19 625. Bets gained on both longs and shorts. NET SHORT for JPY futures slid -2 229 contracts to 100 065 during the week. Bets shrank on both sides.

On commodity currencies . NET SHORT for AUD futures dropped -600 contracts to 59 180, while that for NZD futures decreased -1 521 contracts to 19 347. On the contrary, NET SHORT for CAD futures rose -3 498 contracts to 6 289. Canadian dollar lost ground in tandem with falling oil prices. Despite the fact that Middle Eastern countries have dominated the oil exports market, Canada indeed ranks number four in terms of the amount of crude oil exports, according to EIA’s data. Therefore, the recent selloff in oil prices has direct impact on Canada’s economy and the loonie.

 

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