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CFTC Commitments of Traders – Improved Risk Appetite Weighed on US dollar and Lifted Euro. The Trend may Reverse

As suggested in the CFTC Commitments of Traders report in the week ended June 9, NET LENGTH in USD Index fell -3 569 contracts to 4 689. Speculative long positions increased +2 999 contracts and short positions rose +6 568 contracts. Concerning European currencies, NET LENGTH in EUR futures...

HKD Supported by Low US Yield and Seasonal Factors, Despite Huge Political Uncertainty Ahead

Recent strength of HKD has triggered the territory’s de facto central bank, HKMA, to defend the currency system. The key reasons for strong HKD are broad-based USD weakness, HIBOR-LIBOR spread, semiannual settlement and IPO activities in Hong Kong. Policy uncertainty has taken a backseat as the US government is...

CFTC Commitments of Traders – Traders Trimmed Long bets on USD, whilst Shorts in NZD and CAD Futures Dropped

As suggested in the CFTC Commitments of Traders report in the week ended June 2, NET LENGTH in USD Index fell -6 541 contracts to 8 258. Speculative long positions decreased -3 162 contracts and short positions were up +3 379 contracts. Concerning European currencies, NET LENGTH in EUR...

CFTC Commitments of Traders – Euro Rallied to Highest in 2 Months after European Commission’s Stimulus Plan

As suggested in the CFTC Commitments of Traders report in the week ended May 26, NET LENGTH in USD Index dropped -2 498 contracts to 14 799. Speculative long positions decreased -3 476 contracts and short positions were down -978 contracts. Concerning European currencies, NET LENGTH in EUR futures...

HKD Weakened Despite Widening HIBOR-LIBOR Spread; Hong Kong’s Autonomy at Risk as China Seeks to Impose New Law

Volatility in USDHKD has increased since last week. HKD fell from the strong-side convertibility undertakings against USD after the Chinese Communist Party (CCP) announced the plan to impose national security law in the city. The 12-month HKD FX swap points jumped from 240 to 700 in two days' time....

CFTC Commitments of Traders – NET SHORT of GBP Futures Jumped as Concerns about Brexit Talks Reemerged

As suggested in the CFTC Commitments of Traders report in the week ended May 19, NET LENGTH in USD Index added +847 contracts to 17 297. Speculative long positions gained +559 contracts and short positions were down -288 contracts. Concerning European currencies, NET LENGTH in EUR futures declined -5...

CFTC Commitments of Traders report – Traders Trimmed Bets on USD Futures

As suggested in the CFTC Commitments of Traders report in the week ended May 12, NET LENGTH in USD Index added +25 contracts to 16 450. Speculative long positions dropped -757 contracts and short positions were down -782 contracts. Concerning European currencies, NET LENGTH in EUR futures gained +1...

CFTC Commitments of Traders – Traders Trimmed Bets on USD Index Futures amidst Economic Uncertainty

As suggested in the CFTC Commitments of Traders report in the week ended May 5, NET LENGTH in USD Index added +337 contracts to 16 425. Speculative long positions dropped -1 556 contracts and short positions were down -1 893 contracts. Concerning European currencies, NET LENGTH in EUR futures...

CFTC Commitments of Traders – Bets on Higher Safe Haven Currencies Increased

As suggested in the CFTC Commitments of Traders report in the week ended April 30, NET LENGTH in USD Index added +472 contracts to 16 088. Speculative long positions gained +1 425 contracts and short positions added +953 contracts. Concerning European currencies, NET LENGTH in EUR futures declined -7...

CFTC Commitments of Traders – Bets on Lower British Pound Rose on Disappointing UK Data

As suggested in the CFTC Commitments of Traders report in the week ended April 21, NET LENGTH in USD Index added +259 contracts to 15 616. Speculative long positions gained +989 contracts and short positions added +723 contracts. Concerning European currencies, NET LENGTH in EUR futures rose +601 contracts...

Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price Collapse

Canadian dollar has only edged lower amidst the recent collapse in crude oil price. This is not usual given the strong correlation between the loonie and oil price, as well as the contribution of the energy sector to the country’s economy. We believe the FX market has not fully...

CFTC Commitments of Traders – Traders Bet Higher Euro on First Sign that Coronavirus Pandemic is Under Control

As suggested in the CFTC Commitments of Traders report in the week ended April 14, NET LENGTH in USD Index added +333 contracts to 15 357. Speculative long positions gained +1 044 contracts and short positions added +711 contracts. Concerning European currencies, NET LENGTH in EUR futures rose +6...

CFTC Commitments of Traders – Bets on US Dollar Trimmed while Increased in Safe Haven Currencies

As suggested in the CFTC Commitments of Traders report in the week ended April 7, NET LENGTH in USD Index added +959 contracts to 15 014. Traders trimmed bets on both side as the market awaited more stimulus from the Fed. Speculative long positions dropped -134 contracts and short...

CFTC Commitments of Traders – Bet on Higher Euro should Fade as Data in Eurozone Disappoint

As suggested in the CFTC Commitments of Traders report in the week ended March 31, NET LENGTH in USD Index gained +1 545 contracts to 14 065. Speculative long positions added +496 contracts and short positions dropped -1 049 contracts. Concerning European currencies, NET LENGTH in EUR futures jumped...

CFTC Commitments of Traders – US Dollar Remained Firm again Major Currencies

The reporting period was ahead of Fed's announcement of QE infinity. During the week, US dollar rallied against major currencies. Although the Fed announced to resumed QE, the purchase of US$700B of assets was small as a percentage of US GDP. Meanwhile, as other central banks have announced to...

Flash PMI Gives More Evidence that Japan has Entered Recession, Unlikely to be Rescued by Stimulus

A week before the final data, the flash PMI report for Japan gives a glimpse of how the coronavirus outbreak has hurt the country’s manufacturing and services activities. The composite output index slumped to 35.8, compared with 47 in February. Sector-wise, the services index dived to 32.7 in March...

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...

CFTC Commitments of Traders – Safe Havens Shone amidst Risk Aversion

As suggested in the CFTC Commitments of Traders report in the week ended March 10, NET LENGTH in USD Index declined -10 076 contracts to 12 412. Speculative long positions fell -6 280 contracts and short positions gained +3 796 contracts. Concerning European currencies, NET SHORT for EUR futures...

CFTC Commitments of Traders – Traders Trimmed Bets on Euro as the Currency Rallied Despite Soaring Coronavirus Cases in the Region

As suggested in the CFTC Commitments of Traders report in the week ended March 3, NET LENGTH in USD Index droped -2 589 contracts to 22 488. Speculative long positions fell -7 880 contracts and short positions declined -5 291 contracts. Bets on both sides obviously shrank as the...

CFTC Commitments of Traders – Traders to Bet USD Index Futures Lower as Fed might Cut Rate by -50 bps bps in 2 Weeks

As suggested in the CFTC Commitments of Traders report in the week ended February 25, NET LENGTH in USD Index added +849 contracts to 26 077. Speculative long positions dropped -638 contracts and short positions declined -1 487 contracts. Bets on both sides obviously shrank as the market pondered...