Weakness in Eurozone’s economic data has led traders to trim bets on higher euro but raise short bets for further decline. As suggested in the CFTC Commitments of Traders report in the week ended February 11, NET LENGTH in USD Index gained +2 353 contracts to 19 486. Speculative long positions soared +11 750 contracts and short positions rose +9 397 contracts. Concerning European currencies, NET SHORT for EUR futures increased +10 589 contracts to 85 669. Selloff of the single currency continued as GDP growth in 4Q19 came in weaker than expected. The economy grew +0.1% q/q in the last quarter of 2019. From a year ago, GDP only expanded 0.9%, compared with consensus of. We expect further increase in NET SHORT for the coming week. NET LENGTH for GBP futures added +8 097 contracts to 21 084.
On safe-haven currencies, NET LENGTH of CHF futures dropped -1 152 contracts to 3 797. NET SHORT of JPY futures climbed +4 290 contracts to 26 188. On commodity currencies, NET SHORT for AUD futures fell -10 629 contracts to 32 668. Speculative long positions dropped -180 contracts while shorts plunged -10 809 contracts. Separately, NET SHORT for NZD futures gained +1 884 contracts to 4 076 during the week while NET LENGTH for CAD futures shrank -8 858 contracts to 9 705.
CFTC Commitments of Traders – Weak Economic Developments in Eurozone Drove Euro Lower
