As suggested in the CFTC Commitments of Traders report in the week ended May 14, traders trimmed their bets, on both long and short sides, on futures of US dollar index, euro, Swiss franc, and Canadian dollar. On the other hand, bets on both sides were increased in the futures of British pound and New Zealand dollar. NET LENGTH in USD Index decreased -1 556 contracts to 26 677. Both speculative long and short positions fell during the week, but the decline in the former outweighed that of the latter. All other major currencies stayed in NET SHORT positions.
Concerning European currencies, NET SHORT for euro futures plunged -10 804 contracts to 95 301. NET SHORT for GBP futures declined -3 561 contracts to 3 318. Speculative long positions gained +4 100 contracts while speculative shorts added +539 contracts for the week. We expect both European currencies to trade with increased volatility this week as the upcoming European Parliament election might lead to more power for the Euro-skeptic camp. The outlook for British pound can be more uncertain as the result might again reveal the loss of support of the Conservative Party, mainly due to dissatisfaction of the incumbent’s handling of Brexit.
On safe-haven currencies, Net SHORT for CHF futures gained +431 contracts to 40 010. NET SHORT for JPY futures plunged -30 137 contracts to 61 580 during the week. Speculative long positions rose +10 046 contracts while shorts fell -2 0 091 contracts.
On commodity currencies . NET SHORT for AUD futures rose 6 997 contracts to 64 046. Speculative long positions dropped -3 161 contracts while shorts gained +3 836 contracts. Separately, NET SHORT for NZD dropped -1 304 contracts to 11 438 contracts last week. NET SHORT for CAD futures increased +1 473 contracts to 47 588.