The latest CFTC Commitments of Traders report covered the period just before the US presidential election. During the week, bets on US futures slipped on both sides amidst the highly uncertain election outcome. With Joe Biden on the way to become the next president, risk appetite has increased significantly. We expect to see USD index futures returning to NET SHORT, while long bets on other currencies increase.
As suggested in the CFTC Commitments of Traders report in the week ended November 3, USD Index futures returned to NET LENGTH of 741 contracts. Speculative long positions decreased -1 329 contracts and short positions fell -3 324 contracts. Concerning European currencies, NET LENGTH in EUR futures dived -15 206 contracts to 140 349. NET SHORT of GBP futures rose +4 567 contracts to 11 227 contracts during the week.
On safe-haven currencies, NET LENGTH on CHF futures dropped -608 contracts to 14 895. By contrast, NET LENGTH on JPY futures soared +10 205 contracts to 28 098. Concerning commodity currencies, AUD futures drifted to NET SHORT of 1 314 contract. Separately, NZD futures’ NET LENGTH added +56 contracts to 7 051 during the week. Meanwhile, NET SHORT for CAD futures increased -2 617 contracts to 20 686 contracts.