CFTC Commitments of Traders – Risk Currencies Got Dumped on Hopes of Fed’s Tapering and Resurgence of Pandemic

As suggested in the CFTC Commitments of Traders report in the week ended August 17, NET SHORT of USD index futures dropped -115 contracts to 19 211. Speculative long positions slipped -515 contracts while shorts decreased -400 contracts. Concerning European currencies, NET LENGTH in EUR futures jumped +23 783 contracts to 57 640. GBP futures’ NET LENGTH fell -2 419 contracts to 4 651. We expect net length in EUR and GBP futures to fall in the coming weeks due to the sharp selloff.

On safe-haven currencies, NET LENGTH of CHF future fell -4 131 contracts to 5 547 while while NET SHORT of JPY futures gained +2 551 contracts to 63 208. Concerning commodity currencies, NET SHORT of AUD futures added +1 054 contracts to 50 367 while that of NZD futures dropped -797 contracts to 235 during the week. NET LENGTH of CAD futures sank -3 805 contracts to 2 660 during the week. Commodity currencies were worse off amidst the loss in risk appetite. We expect this trend to continue in the coming week.