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CFTC Commitments of Traders – USD Weakened Further while GBP Slumped on Concerns over No-Deal Brexit

As suggested in the CFTC Commitments of Traders report in the week ended December 8, NET SHORT of USD Index futures more than doubled to 6 486 contracts. Speculative long positions decreased -500 contracts and short positions gained +2 911 contracts. Concerning European currencies, NET LENGTH in EUR futures jumped +16 535 contracts to 156 429. GBP futures drifted to NET LENGTH of 5 710 contract. Yet, a drift back to net short is likely in the coming week. British pound slumped last week as the chance of a no-deal Brexit has greatly increased. The UK and the EU still fail to resolve conflicts on a number of contentious issues including level playing field, fishing rights and governance, even thought the end of the transition period will come in less than 3 weeks’ time. Both UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have started to hint that the possibility of a no-deal Brexit is getting high.

On safe-haven currencies, NET LENGTH on CHF futures fell -4 228 contracts to 10 423. By contrast, NET LENGTH on JPY futures added +663 contracts to 48 166. Concerning commodity currencies, NET SHORT of AUD futures slid -693 contracts to 10 107. Separately, NZD futures’ NET LENGTH increased 1 492 contracts to 10 550 during the week. Meanwhile, NET SHORT for CAD futures dipped -505 contracts to 20 738 contracts.

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