As suggested in the CFTC Commitments of Traders report in the week ended September 1, NET SHORT for USD Index futures dropped – 1 027 to 6 746 contracts. Speculative long positions added +766 contracts and short positions slipped -261 contracts. NET SHORT could shrink further in the coming week as the greenback rebounded to the highest level in a week. Concerning European currencies, NET LENGTH in EUR futures sank -15 005 contracts, to 196 747. ECB officials have voiced concerns about recent strength in the single currency. We expect this would be a focus of the upcoming ECB meeting. Although we believe it is likely that the members would caution about the impact of currency strength on the inflation outlook, they would refrain from taking actions to curb the appreciation for now. GBP futures’NET LENGTH added +712 contracted to 6 312 for the week.