Fri, Oct 22, 2021 @ 00:43 GMT
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CFTC Commitments of Traders – Bets on Major Currencies Reduced as Global Central Banks Rushed to Cut Rates

Bets on major currency futures were trimmed on last week, as major central banks announced emergency measures to contain risks of global recession. US dollar soared last week despite Fed’s two rate cuts in 2 weeks, bringing the Fed funds rate -150 bps lower. Besides announcing to expand QE by +120B euro, ECB accelerated measures to inject 750B euro to the financial system. BOE also announced another emergency rate cut of -50B pound and resumed QE. RBA, besides lowering the cash rate, joined the QE camp by targeting 3-year government bond yields and introducing term facility.

As suggested in the CFTC Commitments of Traders report in the week ended March 17, NET LENGTH in USD Index declined -5 260 contracts to 7 152. Speculative long positions fell -6 060 contracts and short positions dropped -800 contracts. Concerning European currencies, EUR futures drifted to NE LENGTH of 32 495 contracts. Bets on both sides fell last week. NET LENGTH for GBP futures declined -7 688 contracts to 18 640.

On safe-haven currencies, NET LEGNTH on CHF futures rose +6 779 contracts to 7 374. NET LENGTH on JPY futures also jumped +24 778 contracts to 32 935. Bets on both sides declined during the week. On commodity currencies, NET SHORT for AUD futures plunged -25 280 contracts to 28 733. Speculative long positions declined -10 511 contracts while plunged -35 791 contracts. Separately, NET SHORT for NZD futures rose +4 899 contracts to 20 275 during the week while NET SHORT for CAD futures soared +7 633 contracts to 9 623.

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